The S&P 500 Index remains capped at its near-term downtrend at 3910/15 and further consolidation should be allowed for ahead of a resumption of the core bull trend, with support at 3792/74 expected to remain a solid floor, the Credit Suisse analyst team reports.
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“S&P 500 stays sidelined near-term as looked for, holding key flagged support at 3792/74 – the early February price gap and rising 63-day average – but capped at its near-term downtrend, seen today at 3910 and our core outlook remains unchanged. We continue to see scope for a lengthier high-level consolidation phase, but with our broader outlook bullish and we look for a resumption of the core uptrend in due course.”
“Resistance moves to 3886/87 initially, with a break above 3910/15 needed to see the near-term downtrend break to suggest the core uptrend may have already resumed for a test next of the 3929/34 highs of last week. Above here in due course can see a move back to the 3950/51 record highs, with 4070/75 our next core upside objective.”
“Support remains seen at 3861 initially, then the upper end of the price gap from Monday morning at 3843, which we look to try and hold. Below would warn of a retest of 3792/74, but with this expected to hold again and we maintain our tactical bullish bias whilst above here.”