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Upward pressure continues to build in the S&P 500 Index with a break above 3429/44 seen marking the completion of a “head & shoulders” base for a resumption of the broader core uptrend, analysts at Credit Suisse reports.

See – S&P 500 Index: Rate scare to benefit recovery stocks – Morgan Stanley

Key quotes

“The S&P 500 has for now essentially ignored the bearish ‘reversal day’ from Tuesday and this leaves the focus firmly on the mid-September highs and 61.8% retracement of the fall from September at 3429/44.”

“With a clear ‘head & shoulders’ base forming and with daily MACD momentum having already turned higher our bias leans higher for an eventual clear and sustained move above 3444. This would then see a more important base established to mark a resumption of the core uptrend. We would then see resistance at 3495 initially ahead of 3565 and eventually the 3588 high. Immediate support moves to 3396/94, with 3385/81 now ideally holding to keep the immediate risk higher.” 

“Below 3355/47 though remains needed to ease the immediate prospect of a base and the likelihood for further range trading and a retest of support at 3324/23.”