S&P 500 remains on course to test pivotal resistance from the beginning of the price gap from early March and falling 200-day average at 2986/98, but with a daily DeMark exhaustion signal now in place and with volume falling again, analyst at Credit Suisse continue to look for a top here.
Key quotes
“We continue to see scope for a test of pivotal resistance from the beginning of the price gap from early March and falling 200-day average at 2986/98, but with volume starting to decline again as the market rallies and with a daily Demark Sequential 13/’sell’ signal now in place, we maintain our base case view of looking for this to cap and for a top to ideally form.”
“A close above 3024 remains needed to suggest our corrective rally scenario has been wrong, opening the door to strength to extend further to 3136/37.”
“Support moves to 2954 initially, with a break below 2914 needed to ease the immediate upside bias for a fall back to the 13-day average at 2894, with the lower end of the price gap at 2865.”
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