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The strong rally into the election has brought the S&P 500 exactly to the key price/gap and moving average resistance at 3390/95, which needs to be cleared on a closing basis to ease the risk of seeing a broader topping process, per Credit Suisse.

Key quotes

“Despite the strength of the past three days though, we remain of the view we need to see a close above 3395 to reassert the broader converging range, as well as the likelihood price action from September is still consolidation within the broader bull trend and a potential bull ‘triangle’, with resistance then seen next at 3410/15, then 3441.” 

“Failure to close above 3395 though followed by a move back below the price gap from yesterday morning at 3310 would instead increase the risk an important topping process may be underway for a fall back to 3280 initially and eventually pivotal support, starting at 3234 and stretching down to 3209/3199. Below this latter area in our view would mark a significant top.” 

“The VIX maintains its base and we still see the risk higher for a test of 44.44.”