S&P 500 Index: Close below key support at 3792/74 to trigger a deeper setback – Credit Suisse
|S&P 500 remains capped at its near-term downtrend and analysts at Credit Suisse continue to look for a more protracted consolidation/corrective phase to emerge. The spotlight turns back to key flagged supports at the 63-day average and early February price gap at 3792/74, a close below which should clear the way for a deeper setback.
See – S&P 500 Index: Rising rates indicates a serious shift in market outlook – Morgan Stanley
Key quotes
“We continue to look for a more protracted consolidation/corrective phase to unfold, but with the risk now seen growing steadily that we are in fact set for a deeper correction lower.”
“Key flagged support remains seen at 3792/74 – the early February price gap, rising 63-day average and recent low. A close below here should clear the way for a fall to potential trend support at 3735/34, with the real risk for an overshoot to the late January low at 3694. A sustained move below here would warn of a more concerning top.”
“Resistance is seen at 3848 initially, with the immediate risk now seen lower whilst below 3870/75. Above can see a retest of the downtrend at 3903/07.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.