S&P 500 Index: Break above key levels to drive an aggressive short-covering rally – Credit Suisse
|S&P 500 closed last week above 4101 – which suggests further short-term strength up to 4311/25, analysts at Credit Suisse report.
Cross higher into positive territory in weekly MACD momentum
“Last week’s close above the downtrend from the beginning of 2022 and break above ‘last resort’ resistance at the key December ‘reversal week’ high at 4101 is likely to trigger further short-term strength, especially as weekly MACD is now positive, as key moving averages have seen a bullish cross higher and crucially as consensus short positioning from the start of this year is unwound.”
“Next key resistances are seen at 4195/4203, then 4311/25, which should prove a tough barrier.”
“Key support is first seen at the 4101/4088 breakout point, then the key cluster of moving averages and potential uptrend from the 2022 low at 3956/30, with a break below here needed to reassert a bearish tone.”
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