S&P 500 Index: Corrective setback to be over on a break above 4485/98 – Credit Suisse

The S&P 500 Index has staged a strong rebound on increased volume. However, the market still needs to see 4485/98 cleared to suggest the corrective setback is over, in the view of analysts at Credit Suisse.

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63-day average at 4399 to remain a solid floor

“A break above the 13-day exponential average and price resistance at 4485/98 would increase the likelihood that the corrective setback may already be over, clearing the way for a test of 4520/30 next.”

Whilst we would expect sellers at 4520/30 for now, above in due course should see a move back to the 4546 high, then 4565.” 

“Whilst 4485/98 caps, the threat of a deeper corrective setback can remain with support seen at 4459/58 initially, then 4436/26.” 

“Beneath 4436/26 can see a fall to what we still look to be better support from the rising 63-day average at 4399, which we look to remain a solid floor.”