August has seen the S&P 500 stage an impressive 7% gain. Economists at Credit Suisse see scope for a push into a cluster of resistances at 3525/50, but look for this to then ideally cap for a phase of consolidation.
Key quotes
“Support at 3484 holding can keep the immediate risk higher with resistance above 3515 seen next at Fibonacci projection resistance at 3525/29.”
“An overshoot to 3548/50 should be allowed for – 15% above the 200-day average – but we look for this 3525/50 zone to ideally cap at first for a consolidation phase. A direct break though can see resistance next at 3600/09.”
“Below 3484 can ease the immediate upside bias with support seen next at 3468/66. Beneath here remains needed to mark a minor top for a test of the uptrend from late June and the 13-day exponential average at 3433.”
“The VIX has interestingly spiked higher although still needs to clear 28.58 to mark a near-term base and more important turn higher.”
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