S&P 500 Index: Correction lower to emerge from 3900 – Credit Suisse
The S&P 500 Index is set to be capped for now at 3900 and a correction lower can emerge from here, according to the Credit Suisse analyst team.
Key quotes
“S&P 500 has paused beneath next flagged Fibonacci and potential trend resistance at 3866/68. Although momentum is still unable to confirm the new highs, with a large bullish ‘outside week’ in place from the beginning of the year, we still look for a break above 3868 for a move to our long-held and core ‘measured triangle objective’ from October at 3900.”
“With daily and weekly DeMark sequential exhaustion signals all but in place now, 10yr US Inflation Breakevens being capped at their next major resistance and our target and with a cluster of further Fibonacci projection resistances seen here and stretching up to 3930, we maintain our bias of looking for a correction to then emerge from 3900.”
“Support moves to 3845 initially, then 3827/23, below which can see a test of the price gap from Wednesday morning, seen starting at 3816 and stretching down to 3798, which we look to ideally hold. Below here would increase the risk a correction lower may have already begun, although only below 3750 would be seen marking a near-term top.”
Author
FXStreet Team
FXStreet
