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The S&P 500 Index saw its expected pause yesterday and although further near-term consolidation should be allowed for given the rise in Bond Yields with a large bullish “outside week” in place the Credit Suisse analyst team stays bullish overall.

Key quotes

“Resistance stays seen next at 3827/32 ahead of 3866/68 and eventually the “measured triangle objective” at 3900. With a cluster of further Fibonacci projection resistances also seen here and stretching up to 3925/30, we maintain our call to look for a cap here for a fresh and likely we think more protracted consolidation phase. Should strength instead directly extend, we see resistance next at 4000, then 4070/75.”

“Support at 3784/83 ideally holds to keep the immediate risk higher. Below can see a deeper setback to the price gap from last Thursday morning, seen starting at 3765 and stretching down to 3748/38, where we expect better support. We will maintain our immediate tactical bullish bias whilst above last week’s low at 3663.”