S&P 500 Index to test key support at 4502 as near-term momentum falls sharply – Credit Suisse
|The S&P 500 Index is seeing a sharp loss of near-term momentum. Analysts at Credit Suisse look for a test of key support from its 13-day exponential average at 4502, a close below which would confirm a corrective setback is underway.
VIX is rising from the lower end of its two-month range
“The rally in the S&P 500 is showing signs of stalling with near-term momentum turning sharply lower. Key near-term support remains seen at the rising 13-day exponential average at 4502, a close below which should confirm a corrective phase lower is indeed underway for a test of the 4469 recent low, with scope then for the potential uptrend from July and price support at 4446/42.”
“Resistance is seen at 4529 initially, with a break above 4546 needed to curtail thoughts of a correction to reassert the uptrend with resistance then seen next at 4565 ahead of 4600/15.”
“The VIX has held key support from the lower end of its two-month range at 15.77/68 and key remains seen the 200-day average at 20.06, a close above which would suggest strength can extend to the top of the range at 24.50, as well as reinforcing the likelihood of an equity correction lower.”
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