Home S&P 500 Index: The risk of a pullback starts to grow – Credit Suisse
FXStreet News

S&P 500 Index: The risk of a pullback starts to grow – Credit Suisse

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.

Key quotes

“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.” 

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.