S&P 500 Index: Consolidation phase may be coming to an end – Credit Suisse
S&P 500 has been in its expected consolidation phase following the move to 4200 back in late April. The base case of the Credit Suisse analyst team has been that this would be a temporary pause within the core bull trend. Whilst they believed consolidation could extend for the duration of Q2, there are growing signs this phase may be coming to an end with the core bull trend set to resume.
S&P 500 has been consolidated around 4200
“With near-term momentum turning higher, the consolidation phase in the S&P 500 around our 4200 Q2 objective may be coming to an end to suggest we may be getting closer to seeing a resumption of the core uptrend.
“Above the 4238 current high remains needed to confirm though, with the upper end of the ‘typical’ extreme (15% above the 200-day average) now at 4330, just ahead of our 4350 next objective. Whilst we would look for this to cap for a fresh phase of consolidation, above in due course can see resistance next at 4436.”
“Support remains at 4170/68 initially. Only below 4057 though would warn of a near-term top.”
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FXStreet Insights Team
FXStreet
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