S&P 500 ideally holds below resistance at 3319/29 to keep its immediate risk lower for a deeper corrective setback with support seen at 3204/00 and potentially the 200-day average at 3105, analysts at Credit Suisse inform.
More:
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S&P 500 Index: Rotation needs macro support – Charles Schwab
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Equity Markets to extend the correction another 10% – Morgan Stanley
Key quotes
“The S&P 500 has rebounded although on slightly decreased volume but still remains capped ahead of its 13-day average, currently seen at 3362 as well as the top of its short-term down channel, seen lower today at 3347 and our bias remains to view this as a temporary bounce ahead of a deeper correction lower emerging.”
“Support is seen at 3303/01 initially, with a break below 3271 now needed to clear the way for a move back to 3229 and then a cluster of price supports at 3204/3198, which we look to hold at first. A direct break though can expose the 200-day average at 3105.”
“Above 3319/29 would suggest a deeper recovery can be seen back to 3345/47, potentially the 13-day average and 38.2% retracement of the selloff at 3362/70, but with this expected to remain tough resistance.”
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