S&P 500 Index: Key support at 4455 needs to hold to maintain direct upward pressure – Credit Suisse
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The S&P 500 Index reversed lower during the second half of last week. However, analysts at Credit Suisse stay biased tactically higher for now following the recent break above key moving averages at 4487/4455.
S&P 500 to inch higher toward 4663/68
We stay directly biased higher for now for a test of the 78.6% retracement of the 2022 fall and price resistance at 4663/68. Above here would open the door to a move to 4707/12 next, then what we look to be tougher resistance, starting at 4744/49 and stretching up to the 4819 record high. We expect a cap in this zone, in line with our broader medium-term view that the market is set to stay trapped in a broader mean-reverting phase.”
“First support is seen at 4514/01, which includes the 23.6% retracement of the recent recovery and 13-day exponential moving average, which floored the market on Friday last week. Below here the next level is seen at the 200-day average at 4488, then the 63-day average and price lows at 4461/55. Only a break below here would turn the short-term risks back lower within the range.”
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