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S&P 500 has started Q2 strongly and although the rally is now leaving the market in “typical” extreme territory, analysts at Credit Suisse see scope for the rally to extend further yet and look for a move to 4104/09 next and eventually to the at 4200 level.  

See:  April to be strong for markets – Morgan Stanley

S&P 500 surges higher to start Q2  

“Although the rally is beginning to now leave the market at what we see as its ‘typical’ extreme – 15% above the 200-day average and also above daily, weekly and monthly Bollinger Bands – RSI momentum is only starting to get overbought and we see scope for the rally to extend further yet.”  

“A knee-jerk pullback should be allowed for ahead of further strength to 4100, then what we look to be a tougher test at 4104/09 – trend resistance from last November as well as Fibonacci projection resistance. We would look for this to cap at first for a pullback, but with a move above expected in due course for 4138 and eventually our 4200 Q2 objective.”  

“Near-term support moves to 4057, with the price gap from yesterday morning at 4034/20 ideally holding to keep the immediate risk higher. Below can see a deeper setback to 3993/73, but with fresh buyers expected here.”