The S&P 500 rally continues to lose momentum at the 3394 record high, with a daily RSI momentum divergence in place the risk for a correction lower is growing steadily, but with a break below 3336/26 needed to mark a near-term top, according to the Credit Suisse analyst team.
Key quotes
“The uptrend continues to stall just ahead of the 3394 record high and with a recent small ‘doji’ session from Thursday last week and with daily RSI momentum holding a small bearish RSI divergence, the risk for a correction lower continues to grow. Below 3362 can see this risk increase further with key then the recent low and 13-day average at 3336/26. Only a close below here though would confirm a correction lower is finally underway, with support then seen next at 3301, then 3271.”
“Whilst support at 3336/26 holds the trend can just lean higher for now and the corrective threat ignored for a test of the 3394 record high. Beyond here can see resistance next at the top of the daily Bollinger Band at 3415, then what we look to be tougher Fibonacci projection resistance at 3432/36 which we then look to cap for a consolidation/corrective phase.”
Share
