|

S&P 500 Index: Scope for further near-term consolidation, but with support at 4016/09 holding – Credit Suisse

The rally in the S&P 500 finally stalled at 4195 following the strong payroll report and a setback is underway. The index is expected to see further near-term consolidation but with weakness still viewed as corrective for now, in the opinion of analysts at Credit Suisse.

S&P 500 to see an eventual test of 4312/26

“With daily MACD threatening to cross lower, we see scope for further near-term weakness, but our bias, for now at least, remains to view this as a temporary pullback.”

“Support is seen next at the 38.2% retracement of the rally from the late December low at 4031 and then more importantly at the back of the broken medium-term downtrend and price support at 4016/09, with better buyers expected to show here. We suspect we need to see a move below 3886 to make the argument that we may have seen a more important peak.” 

“Resistance is seen at 4112/15 initially, with a move above 4154/56 needed to clear the way for a retest of 4195/4203. An eventual break above here should see a test of the 61.8% retracement of the 2022 fall and summer 2022 high at 4312/26.”

Author

FXStreet Insights Team

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

More from FXStreet Insights Team
Share:

Editor's Picks

AUD/USD turns south toward 0.6900 as USD firms up

AUD/USD sees fresh selling and drops toward 0.6900 in late Asian trading on Monday, as renewed US Dollar strength weighs on the pair amid lingering Middle East and Russia-Ukraine geopolitical tensions. Focus remains on Oil prices, Treasury bond yields, and RBA expectations for fresh trading impetus in the major.

USD/JPY retakes 158.00 amid hawkish BoJ bets, firmer USD

USD/JPY erases losses and retakes 158.00 in the Asian session on Monday, trading within a one-week-old range. Geopolitical uncertainty continues to underpin the US Dollar, despite fading Fed rate hike hopes, supporting the pair's rebound. However, further upside could be capped by hawkish BoJ expectations and looming intervention risks that could support the Japanese Yen.

Gold extends its struggle below $4,200

Gold clings to recovery gains near $4,150 early Monday, maintaining last week’s range. US Dollar reverts to 17-month highs despite receding Oil prices, Treasury yields, and Fed rate hike bets. Gold’s technical picture appears skewed to the downside in the near term.

Bitcoin, Ethereum and Ripple extend multi‑week rally as bulls target higher levels
Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) extend gains on Monday, after posting weeks of gains since mid-September. The three cryptocurrencies now eye key upside targets as bullish momentum strengthens: $90,000 for BTC, $3,000 for ETH, and $1.90 for XRP. Bitcoin price trades at $86,722 on Monday after three consecutive weeks of gains.
WTI drops to near $89.00 as G7 taps emergency reserves

West Texas Intermediate oil price extends its losses for the second successive day, trading around $89.30 during Asian hours on Monday. Crude oil prices experienced a decline after G7 nations agreed to release 100 million barrels of crude and diesel from emergency reserves, pledging to avoid energy export restrictions following pressure from US President Donald Trump.

The Euro is near a one-year low: Inflation could trigger its rebound, not its fall

EUR/USD has fallen to its lowest level since May 2025. The pair hit 1.1312 on Wednesday and trades well below the January peak of 1.2082. The decline reflects a powerful combination of US Dollar strength, geopolitical uncertainty and renewed concerns about Europe's exposure to higher energy prices.