S&P 500 is expected to see a lengthier consolidation and range-trading phase with supports for a setback seen at 3887/84, then more importantly at the 63-day average at 3839, as reported by the Credit Suisse analyst team.
See: S&P 500 Index to surge higher to 4100 in the next 12 months – Deutsche Bank
Key quotes
“The S&P 500 rebound has stalled as suspected and our base case scenario remains that the market is in a broader consolidation phase, and we continue to look for further neutral range trading, albeit with the immediate risk seen slightly lower in the range.”
“Key near-term support stays seen at the recent low and 38.2% retracement of the March rally at 3886/84. Beneath here can clear the way for a deeper corrective setback with price support seen at 3874 next, ahead of 3854/52 and then what we view as more important support from the 63-day average, now at 3839, ahead of which we look for a better floor.”
“Resistance moves to 3927 initially, then 3937, with a break above 3955 needed for a move back to 3970/80, but with fresh sellers expected here. Above 3984 is needed to reassert the broader uptrend, for 4000 initially.”
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