S&P 500: No supports of note broken – Credit Suisse

S&P 500 outlook stays seen critically balanced with the market still below its 200-day average at 3000 on a closing basis, but with no supports of note broken. A close above 3000 and then break above 3024 remains needed to suggest the top here is incorrect, analysts at Credit Suisse brief.

See: S&P 500 ended on a positive note in 17 of the past 23 presidential election years – Charles Schwab

Key quotes

“A close above 3000 and then break above 3024 remains needed to suggest our toping scenario has been wrong and further gains can be seen with resistance seen at 3038 initially ahead of 3083 and then more importantly at 3136/37 – the 78.6% retracement of the Q1 collapse and March high.” 

“Support is seen at 2980/78 initially, but with a move below the lower end of the price gap from yesterday at 2957/55 needed to ease the pressure off the 200-day average for a fall back to the short-term 13-day average and further gap support at 2922/14.”