S&P 500 Index resumes its bull trend targeting the 4350 mark – Credit Suisse
The S&P 500 posted a weekly close above its prior range top at 4238 on Friday. With short-term momentum picking up again, analysts at Credit Suisse look for a renewed trending phase up to 4350, where the index is expected to see another temporary pause.
OnBalanceVolume has picked up impressively, giving further confidence for a new bull leg
“Near-term momentum has already turned higher a while ago, whilst breadth and especially volume measures are improving sharply and we therefore maintain our view of looking for a resumption of the core bull trend.”
“We look for a move to trend resistance from February at 4317, then our 4350 next core objective. With the upper end of what we see as the ‘typical’ extreme also seen here at 4353 (15% above the 200-day average) we would look for a fresh phase of consolidation here. Big picture though, above in due course can see resistance next at 4436.”
“Support moves to 4220 initially, with 4170/68 now ideally holding. Below would mark a minor top but with fresh support then expected at the 63-day average at 4130.”
“The prior poor OnBalanceVolume picture was a significant factor in our successful call in late April to look for a consolidation phase from our 4200 Q2 objective. This though is now improving and in an impressive way and we see no reason not to look for a move to new highs to reinforce the core price bull trend.”
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FXStreet Insights Team
FXStreet
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