S&P 500 Index remains in a clear medium-term downtrend – Credit Suisse

S&P 500 have broken important support levels at the uptrend from the 2022 low, which should trigger a sooner than expected resumption of the core bearish downtrend, in the view of economists at Credit Suisse.

Near-term resistance moves to 3930/62

“S&P 500 has broken below the uptrend from the 2022 low and 61.8% retracement at 3914/3887, which negates the potential for a short-term period of consolidation and instead suggests a direct resumption of the broader downtrend, reinforced by the rolling lower in weekly MACD.”

“We look for a move back to new lows for the year below 3637 and for a test of the 200-week average at 3586, then 3505/00. Whilst we would look for better support to show here, a break can clear the way for a fall to a cluster of supports at 3234/3195, which includes the 38.2% retracement of the entire uptrend from the 2009 GFC low.”

“Near-term resistance moves to the recent breakdown point at 3930/62, which we ideally look to cap the market to keep the risks directly lower. Next minor resistance above here is back at the 4119 high.”