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The S&P 500 has again managed to hold support on a closing basis from its rising 13-day average, currently seen at 2831, analysts at Credit Suisse apprise.

Key quotes

“Near-term, we see scope for a rebound to test resistance from the price gap seen Friday, seen starting at 2869 and stretching up to 2912.”

“With the 63-day average also in this zone at 2874 and with the rally having essentially been capped as expected at the 61.8% retracement of the Q1 collapse at 2934, we continue to look for this to cap to add weight to our topping scenario.” 

“A close below the aforementioned 13-day average at 2831 is needed to add weight to this view with support then seen next at 2798, then 2776/75 – the 23.6% retracement of the entire March/April recovery. At the end of the day though, below 2733/27 remains needed to mark a more important top.”