S&P 500 Index: Resistance at 4078/90 likely to cap – Credit Suisse
|S&P 500 has recovered, but economists at Credit Suisse remain biased to fade strength.
Break above 4078/90 to reassert an upward bias
“Whilst capped below the downtrend from the beginning of February and price/gap resistance at 4078/90, we continue to view the broader risk as marginally lower for a fall back to 3809, then support next at the 61.8% retracement at 3764/60 with the key 200-week average now at 3736. Our bias would then be to look for the market to stabilize around 3764/36.”
“A weekly close below 3736 would be seen to re-expose the 2022 low and 50% retracement of the 2020/2022 bull trend at 3505/3492.”
“Above 4078/90 would suggest we have seen a ‘false’ break lower to reassert an upward bias for strength back to 4195, possibly even 4312/4325.”
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.