S&P 500 Index to remain under pressure as yields re-price higher – Credit Suisse
|The rise in yields reinforces the existing bearish “reversal week” in the S&P 500. Analysts at Credit Suisse continue to look for further weakness to the 4495 December low and now more realistically the 200-day moving average (DMA), currently placed at 4421.
Break above 4748/58 is needed to ease the threat of further corrective weakness
“With US bond and real yields reinforcing their large yield bases, we continue to look for a deeper corrective phase.”
“We stay biased lower for a test of important support from the December low at 4495 and now we think more likely the 200-DMA at 4421.”
“Whilst we would look for the 200-DMA to ideally hold, a weekly close below would suggest we have seen a more important peak with supports seen next at 4279, then the 38.2% retracement of the rally from last October at 4213.”
“Above 4748/58 is needed to ease the threat of further corrective weakness for strength back to the 4819 high.”
See – S&P 500 Index set to hit the 5,000 level in June – UBS
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.