S&P 500 has seen a sharp setback post the hawkish surprise from the Fed but with support from the uptrend from last October still holding, seen at 4208/02. The bias of the Credit Suisse analyst team remains to view weakness as corrective and we look for this to ideally hold.
S&P 500 to suffer a deeper setback below 4208/02
“Weakness has yet again been contained by support from its uptrend from last October, today seen at 4208 and our bias remains to still view weakness as corrective.”
“Above 4239 is needed to add weight to this view for a retest of the highs at 4252/60. Beyond here in due course can see resistance at 4275 next ahead of 4291 and then trend resistance from mid-April, now at 4324. Whilst we would look for a fresh cap here, we look for an eventual move to 4350, not only Fibonacci projection resistance but also now the location of the upper end of what we see as its ‘typical’ extreme (15% above the 200-day average).”
“Below 4208/02 though would warn of a deeper setback to test support from the early June low at 4170/68. Failure to hold here would see a top complete to expose support from the 63-day average, currently seen at 4133.”
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