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The S&P 500 has been capped as expected at the upper end of the flagged resistance/recovery objective at 2883/2934 – the price gap from early March, 61.8% retracement of the Q1 collapse and falling 63-day average, per Credit Suisse.

 Key quotes

“With a bearish average ‘death cross’ in place, we maintain our base case scenario strength has been corrective only and we continue to look for a top here for an eventual resumption of the Q1 decline.” 

“Below 2727 is now needed to mark a near-term top to add weight to our view, with critical then 200-week average at 2664.”

“A close above 2934 would suggest the recovery can extend yet further to the 200-day average and gap resistance at 2986/3004. We would look for a fresh attempt to set a top here.”