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The S&P 500 remains well below the lower end of its ‘typical’ extreme, 15% below the 200-day average, further increasing the risk we may be seeing the early stages of a more sustained decline, per Credit Suisse.

Key quotes

“Support is seen at 2364/60, below which can add momentum to the decline again, with support thereafter seen at the current YTD low at 2192, beneath which we see more important support at 2030/2000, the 50% retracement of the entire 2009/2020 bull market.”

“Above 2641/51 on a weekly closing basis would suggest a deeper recovery/consolidation phase can indeed unfold, with resistance next at 2793, then more importantly starting at 2855 and stretching up to the 200-day average at 3022. We would look for a fresh top here.”

“Monthly RSI has broken support stretching back to 2011 and is seen likely to fall further.”

“Monthly MACD holds a long-term bearish divergence and has also turned decisively lower.”