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Economists at Credit Suisse still hold a positive outlook for the S&P 500 Index and maintain a 3900 target with potential for 4070/75 further out. 

Key quotes

“The S&P 500 has started 2021 strongly, completing a large bullish ‘outside week’ and we maintain our bullish outlook for its ‘measured triangle objective’ at 3900. With further technical resistance seen here and at 3930 our bias is for a cap at first in this 3900/30 zone and for consolidation/setback to be seen to unwind the overbought condition.” 

“Above 3930 in due course though can see resistance next at 4070/75 and potentially as far as 4175/4200.”

“Support at 3663 now ideally holds to keep the immediate risk higher. Below would see the ‘outside week’ negated to warn of a ‘false’ break higher and a phase of consolidation/corrective weakness, with support then seen next at the 63-day average, currently at 3605, with fresh buyers expected here.”