The S&P 500 Index has completed a large bullish “outside week” and although the Credit Suisse analyst team sees scope for a near-term pause, the core outlook stays bullish for the “measured triangle objective” at 3900.
Key quotes
“Whilst we see scope for a near-term pause and we watch bond yields closely, especially Real Yields, we stay bullish overall with resistance seen next at 3832 ahead of 3866/68 and eventually the “measured triangle objective” at 3900. With a cluster of further Fibonacci projection resistances also seen here and stretching up to 3925/30, we maintain our call to look for a cap here for a fresh and likely we think more protracted consolidation phase. Should strength instead directly extend, we see resistance next at 4000, then 4070/75.”
“Support moves to 3801 initially, with 3784/83 now ideally holding to keep the immediate risk higher. Below can see a deeper setback to the price gap from last Thursday morning, seen starting at 3765 and stretching down to 3748/38, where we expect better support. We will maintain our immediate tactical bullish bias whilst above last week’s low at 3663.”
Share
