S&P 500 Index set to break below key 200-DMA support at 4453/51 – Credit Suisse
The S&P 500 has seen a more decisive rejection of key resistance at 4591/95. Analysts at Credit Suisse expect to see an important cap here in line with theirr broader 4200/4600 ranging view, looking for a retest and then break below key price and 200-day moving average support (DMA) at 4453/51.
Broader risk to turn lower again in line with a 4200/4600 ranging view
“S&P 500 has seen a fresh and what looks to be decisive rejection of key flagged resistance at 4591/95. With the market also still below its falling 63-DMA at 4623, our bias remains to view recent strength as corrective only and for this to remain a major barrier and for the broader risk to then turn lower again in line with our broader 4200/4600 ranging view.”
“Key support stays seen at the 200-day average and price pivot at 4453/51. A close below here should add weight to our view to mark a more important turn lower with support then seen next at 4414/09 ahead of 4365 and eventually we think a retest of 4223/13.”
“Resistance is seen at 4533 initially, with 4591/95 ideally continuing to cap. A close above the 63-day average at 4623 would instead suggest the recovery can extend further with resistance seen next 4663/65 and potentially the 78.6% retracement of the January sell-off at 4691.”
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FXStreet Insights Team
FXStreet
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.
