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S&P 500 is expected to open weaker given the overnight news with key support for today seen at the 13 and 63-day averages, recent lows and top of the recent price gap at 3340/27, analysts at Credit Suisse apprise.

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  • S&P 500 Index: Near-term correction, long-term recovery – Morgan Stanley

Key quotes

“Another positive session for the S&P 500 on Thursday following the completion of a near-term base and whilst we are likely to see the market lower at the open today given the overnight news, our bias is to view this as a pullback within the broader sideways consolidation phase.” 

“Key support for today remains seen at the 13 and 63-day averages, recent lows and top of the price gap at 3340/27. We look for this to try and hold the anticipated setback for a move back to 3397/99, then what we look to be tougher resistance, starting at the mid-September highs at 3425/29, with the ‘measured base objective’ at 3437 and with the 61.8% retracement of the fall from September at 3444. Our bias remains to look for a fresh cap here for now for a lengthier period of broader sideways price action to develop ahead of the US election.” 

“Below 3327 though can see a near-term top established for a fall back to 3298/93, with a break here needed to negate the base, with support then seen next at 3279.”