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The S&P 500 Index remains at the 3900/3930 resistance cluster and the “ideal” roadmap remains for a cap here at first and for a consolidation/correction phase to unfold, the Credit Suisse analyst team reports.

Key quotes

“S&P 500 is showing tentative signs of stalling at our 3900/3900 ‘measured triangle objective’ and resistance zone and although we continue to see the broader trend higher, our ‘ideal’ base case remains for a cap here at first and for a temporary consolidation/correction phase to unfold.” 

“Support moves to 3897 initially, then 3885/82 below which would now add weight to our view as this would see a minor top complete for a retreat back to 3871 initially, then the rising 13-day exponential average, currently at 3854. A close below here is needed to suggest a lengthier consolidation can emerge, with support seen next at 3840/30.” 

“Big picture, our bias remains to view consolidation as a temporary pause ahead of a sustained break above 3930 in due course with resistance next at 3950/51 ahead of 3983 and eventually 4070/75.”