S&P 500 uptrend is starting to lose momentum and support at 3765 needs to hold to suggest the immediate risk can still lean higher, economists at Credit Suisse report.
“The S&P 500 Index has again been unable to resume its uptrend and although a large bullish ‘outside week’ remains in place we are becoming concerned the risk is growing for a deeper pullback.”
“Support at 3777/65 needs to hold to suggest the immediate risk can still lean higher with resistance seen at 3807 initially, then 3827/23.”
“Above 3827/23 remains needed to ease the threat of a setback to reassert the uptrend with resistance seen next at 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 protracted consolidation phase.”
“Below 3765 would suggest a more concerted pullback/consolidation can emerge for a slide back to 3748/38, potentially as far as 3705/3695, but with fresh buyers expected here. We shall though still maintain a tactical bullish bias whilst above the ‘outside week’ low at 3663.”