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S&P 500 ideally holds support at 3519/09 for an eventual break above 3629 for the completion of a bullish “pennant” pattern to reinforce the existing and larger bullish “triangle” pattern, the Credit Suisse analyst team informs.

Key quotes

“The S&P 500 has seen its expected setback to just shy of support from its rising 13-day average, now seen higher at 3538 and although a retest of the recent lows and gap support at 3519/09 should still be allowed for, our bias remains for this to continue to hold for the formation of a potential near-term bullish ‘pennant’ pattern to reinforce the existing and larger bull ‘triangle’.” 

“Resistance is seen at 3589 initially, then the near-term downtrend at 3615. Above 3629 remains needed to clear the way for a retest of the current high at 3645, then trend resistance from February, now at 3671, with fresh sellers expected here for now. Indeed, through this latter level is needed to inject momentum to the rally with resistance then seen at 3700 next, then 3765.” 

“Below 3509 would raise the prospect of a more protracted consolidation/correction lower for a test of support next at 3489/84.”