S&P 500 Index to fall back to the 4223/4199 key support zone on a break below 4365 – Credit Suisse
|The S&P 500 has gapped lower for its expected retest of 4365. Analysts at Credit Suisse maintain a core negative outlook for a break below here for a retest of the 4223/4199 key support cluster.
S&P 500 to mark important and large “head & shoulders” top below 4199
“We continue to view the recent rebound as corrective only and we look for a clear break below the recent low and the 61.8% retracement of the January/February rally at 4365 in due course with support seen next at 4292 and eventually the major support cluster at 4223/4199 – including the 23.6% retracement of the entire 2020/2021 bull trend and January low.”
“Although a fresh hold at 4223/4199 should be looked for, the completion of what we see as major tops in Credit markets is seen to increase the risk for a major top here also. Below 4199 would mark the completion of a large ‘head & shoulders’ top to signal an important change of trend lower with the next meaningful support then seen at 3855/15.”
“Resistance is seen at 4430 initially, with 4456//90 now ideally capping.”
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