Home S&P 500 to challenge key resistance at 3328/38, VIX returns to normal levels – Credit Suisse
FXStreet News

S&P 500 to challenge key resistance at 3328/38, VIX returns to normal levels – Credit Suisse

S&P 500 strength stays on course to test the top of its February “pandemic” gap at 3328/38, but economists at Credit Suisse still believe this level will cap the index at first for a fresh consolidation phase. Meanwhile, the VIX is starting to move below key support and may be returning to “normal” levels. 

Key quotes

“S&P 500 has held flagged high-level support at 3200/3198 and this keeps the immediate bias higher for a test on the top of the February gap at 3328/38. We continue to look for this to remain tough resistance for now for lengthier consolidation. A break in due course though should clear the way for a challenge on the 3394 record high.”

“Below 3200 would mark a minor top to reinforce the likelihood for further range-trading with support then seen back at 3128/16, which we would look to hold. A break though can see a retest of support from the 200-day average, currently seen at 3052, but with only a close back below here seen raising the risk we are seeing the construction of a potentially important top.”

“The VIX is moving below key support from the top of its 2019 range at 24.81/23.54 and a weekly close below here would be seen opening the door to more ‘normal’ conditions with support seen at 20 next.”

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.