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S&P 500 has retested and rejected the 4238 record high for the completion of a small bearish “reversal day.” Nevertheless, with daily MACD momentum having turned higher, the bias of the Credit Suisse analyst team is still to give the upside the immediate benefit of the doubt whilst above 4171/69.

Support at 4170/69 set to hold despite the small bearish “reversal day”  

“S&P 500 strength has extended to test and reject the 4238 record high for the completion of a small bearish ‘reversal day’ and although daily MACD momentum has turned higher this suggests it still may be too soon to look for a direct resumption of the uptrend.

“Support remains 4198 initially, then 4183, with the recent price gap at 4176/69 to keep the immediate risk higher for now. Above 4210 is needed to clear the way for a back to 4234/38. Beyond here though is needed to neutralize the bearish ‘reversal day’ for 4260 next.”  

“Big picture, we continue to look for a move to 4350.”  

“Below 4169 can instead reinforce thoughts of further range trading for a fall back to 4156/52, potentially the uptrend from late October at 4133, but with fresh buyers expected here for now.”