S&P 500 Index to correct lower towards the 4315 mark – Credit Suisse
|S&P 500 is expected to be capped at trend/Fibonacci resistance at 4362/68 for a correction lower with support seen at 4315/14 initially, then 4298/88, the Credit Suisse analyst team reports.
S&P 500 to correct lower from the 4350/65 level
“The S&P 500 has managed to rally to just shy of trend resistance from mid-April and also Fibonacci projection resistance at 4362/68 and with volume decreasing on the move higher we continue to look for this to ideally cap and for a correction lower to emerge.”
“Support stays seen at 4330/29 initially, then the lower end of the price gap from Friday and recent low at 4315/14. A break below here would mark a minor top to add weight to our view for a correction lower with support then seen next and initially at the 13-day exponential average and price support at 4298/88.”
“A close below 4298/88 and then 4286 though is needed to warn of a more protracted setback and ‘summer correction’, with support then seen next at 4257.”
“Above 4368 can curtail thoughts of an immediate correction lower to suggest the uptrend can extend further yet with resistance seen next at 4400 and eventually 4436/56.”
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