Home S&P 500 Index to resume the uptrend if holds key support at 3209/3199 post the US elections – Credit Suisse
FXStreet News

S&P 500 Index to resume the uptrend if holds key support at 3209/3199 post the US elections – Credit Suisse

The S&P 500 is holding key support from the 3209/3199 September low though the market has weakened as the election approaches. Whilst above here, this would suggest that investors are more skewed to a clean sweep election result and the likelihood is that consolidation from September is temporary before the core uptrend resumes. A conclusive move below would instead put in an important bearish “double top”, per Credit Suisse.

See: Nasdaq 100 holds key support to suggest a Biden win may not be the consensus – Credit Suisse

Key quotes

“The S&P 500 has stabilized as expected as we approach the US election after having fallen to within a touching distance of its pivotal support at 3209/3199, which includes the key September low. Key technically will be whether this 3209/3199 support remains intact post the election.”

“Given we are seeing both S&P 500 and Nasdaq 100 hold key supports into tonight and with the long-end of the US bond market actually already breaking key support levels, we remain of the view investors are more positioned to a clean sweep outcome rather than a split or contested result and a ‘blue sweep’ at that.” 

“If we can hold 3209/3199 post the election then that should add weight to the view weakness from September has been consolidation in the broader bull trend. We thus look for a test of key resistance seen starting at the price gap from last week, seen starting at 3342 and stretching up to 3390/94, also the 13 and 63-day averages, with sellers expected here. A close above 3394 though stays needed to suggest a better low has indeed been established, with resistance then seen next at 3410/15, then 3441.”

“A conclusive break below 3199 though would see a significant top established, exposing the 200-day average, currently at 3129. Worryingly for bulls, weekly RSI momentum already looks to be holding a top.”

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.