S&P 500 is expected to see further corrective weakness to a cluster of supports at 4238/30, where economists at Credit Suisse would then look for a fresh floor. Only a sustained close below the 200-day average (DMA), currently at 4110 would warn of a potentially important change of trend.
S&P 500 is seen at risk to a deeper corrective setback to 4238/30
“Resistance at 4403/33 capping can keep the immediate risk lower for a deeper setback to 4238/30 – the July low, May high and 23.6% retracement of the September 2020/September 2021 uptrend. Our ‘ideal scenario’ would be for a secure floor here for a resumption of the core bull trend.”
“A close below 4230 would suggest weakness could extend further to the key long-term 200-DMA at 4110, but with a fresh floor expected here.”
“A close above 4403/33 would suggest the worst of the correction may already be behind us, but with a break above 4487 needed to suggest the broader uptrend has directly resumed for a move back to 4546, then 4600/15.”
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