S&P 500 Index: Resistance at 3852 to cap for a fresh turn lower – Credit Suisse
|The S&P 500 Index is expected to be capped at its 13-day average at 3852 for a fresh turn lower in what analysts at Credit Suisse look to be a potentially lengthy consolidation/corrective phase.
Key quotes
“A sharp recovery for the S&P 500 on Friday, but this has just bought the market back to its 13-day exponential average at 3852. We look for this to ideally cap for a fresh move lower in line with our broader view for a lengthy consolidation/corrective phase following the move to our 3900/3930 core target in mid-February.”
“Below support at 3808/04 is needed to add weight to our view for a fall back to 3784 and eventually a retest of 3723. Beneath here can see a test of we look to be better support at 3694/78 – the late January low and 38.2% retracement of the rally from late October. Our bias would be for a floor to be found here. Should weakness directly extend though this would suggest a more important top is in place and further weakness can be seen with support then seen next at 3663, then 3636/33.”
“Above 3852 can see a retest of the downtrend at 3900/15, but with a fresh cap expected here. Above 3915 is needed to suggest the correction is over and core bull trend resumed, for a move back to 3950/51.”
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.