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The S&P 500 is expected to remain in a potentially lengthy consolidation/corrective phase with key resistance seen at the near-term downtrend at 3896, per Credit Suisse.

See –  S&P 500 Index: Bull market is intact but the correction has further to go – Morgan Stanley

Key quotes

“S&P 500 strength yesterday was capped ahead of its near-term downtrend, today seen at 3896 and the subsequent retreat has seen the market move back below its 13-day exponential average, now at 3838. This choppy price action is seen adding weight to our view that the market has entered a lengthy consolidation/corrective phase following the move to our 3900/3930 core target in mid-February and for the time being we are reluctant to materially chase either strength or weakness.”  

“Below support at 3808/04 is needed to clear the way for a fall back to 3784, a break of which is needed for a retest of the 3723 recent low. Beneath here can see a test of which we look to be better support at 3694/78 – the late January low and 38.2% retracement of the rally from late October.”  

“Immediate resistance is seen at 3847/52, above which can see strength back to 3881, then a retest of the downtrend at 3896, but with a fresh cap expected here.”  

“Above 3915 stays needed to suggest the correction is over and core bull trend resumed, for a move back to 3950/51.”