S&P 500 surged higher on Thursday after holding above the key uptrend from November, which rises to 4084 today. Resistance stays at 4183/88, which economists at Credit Suisse expect to prove a tough barrier to keep the market trapped in its recent range. Only above here would reassert the uptrend.
See: S&P 500 Index to advance nicely towards 4500 by end-2022, defying inflation risks – CE
Current consolidation phase to extend further above 4039
“The choppy back and forth price action this week is very much in line with our base case of further consolidation over the next couple of weeks above key supports, including the uptrend from November 2020 at 4084 as well as the price gap from early April and the rising 63-day average at 4039/34.”
“Next key resistance is seen at the price gap at 4172/88. Whilst below here, further choppiness within the context of a sideways range is likely in our view. Post this sideways phase, an eventual close above 4172/88 would hint at an early resumption of the uptrend, opening up a move to the recent record highs at 4238. A close above here is ultimately needed though to reassert the core bull uptrend, end the broader Q2 consolidation and trigger an eventual move to our next key objective at 4350.”
“Near-term support moves to 4122/16, then the November uptrend at 4084. Only a closing break below 4039/20 would suggest a deeper drawdown, with the next initial supports at 4001/00, then 3944.”
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