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S&P 500 is expected to stay capped at 3980/84 and analysts at Credit Suisse look for a lengthier consolidation and range-trading phase to emerge. Supports are seen at 3886/84, then more importantly at the 63-day average at 3835.

See –  S&P 500 Index to surge higher to 4100 in the next 12 months – Deutsche Bank

Key quotes

“Our base case scenario remains that the market is in a broader consolidation phase, and we thus do not look to chase strength much further and we look for further neutral range trading.”

“Near-term support moves to 3930, then 3913/11, below which can see a retest of the recent low and 38.2% retracement of the March rally at 3886/84.”  

“Beneath 3886/84 can increase the risk for a deeper corrective setback with price support seen at 3874 next, ahead of 3854/52 and then what we view as more important support from the 63-day average, now at 3835, ahead of which we look for a better floor.”  

“Resistance moves to 3955 initially above which can see a move back to 3970/80, but with fresh sellers expected here. Above 3984 is needed to reassert the broader uptrend, for 4000 initially.”