Above 3785, S&P 500 reasserts its core bull trend and the Credit Suisse analyst team looks for strength to extend to the core target and “measured triangle objective” at 3900.
See – S&P 500 Index can reach 4,400 in the most optimistic scenario – BofAML
Key quotes
“The S&P 500 Index has pushed strongly higher after neutralizing its bearish ‘reversal day’, clearing with ease the cluster of Fibonacci resistances at 3765/85. This should clear the way for strength to extend directly further with resistance seen next at 3812 ahead of 3825/32 and eventually the ‘measured triangle objective’ at 3900.”
“With a cluster of further Fibonacci projection resistances seen at 3900 and stretching up to 3925/30, we maintain our call to look for a cap here and a fresh and likely we think more protracted consolidation phase. Should strength instead directly extend, we see resistance next at 4000, then 4070/75.”
“Support moves to 3796 initially, then the price gap from yesterday morning, seen starting at 3765 and stretching down to 3748/38, which we look to hold to keep the immediate risk higher.”
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