S&P 500 maintains its near-term base and stays seen on course to test a cluster of more important resistances at 3429/44, which analysts at Credit Suisse look to cap for now to define the top of a broader range.
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Key quotes
“The S&P 500 has successfully held support from the ‘neckline’ to its base at 3327/23, as well as its rising 13 and 63-day averages and the market has gapped higher for a break above resistance at 3379/81. With daily MACD momentum having turned higher we continue to look for a move to test 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 for this to cap for now for the unfolding of a lengthier consolidation phase.”
“A direct break above 3444 would raise the prospect a more important base has been established, especially given the momentum turn higher to mark a resumption of the core uptrend and a move back to the 3588 high.”
“Support moves to 3386 initially, then gap support from yesterday at 3367/48, which we look to try and hold. Only a close below 3327/23 though would see the base negated with support then seen next at 3298/93, then 3279.”
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