S&P 500 has cleared trend resistance from April, and although volume levels remain low, economists at Credit Suisse look for a touch more strength yet to their Q3 objective at 4436/56.
Near-term support moves to 4375
“The S&P 500 maintains the strong tone after holding our 4298/88 corrective target, and the market has moved above trend resistance from mid-April. Our main concern remains the low volume levels on the move to new record highs, but despite this, our bias is to give the immediate upside the benefit of the doubt, looking for a touch more strength.”
“Resistance is seen next at 4400 and eventually our 4436/56 Q3 objective, also the upper end of what we see as its ‘typical’ extreme (15% above the 200-day average). Our bias remains for this to then cap and for a summer correction/consolidation phase to then emerge.”
“Near-term support moves to 4375, then 4364/62, below which can ease the immediate upside bias for a pullback to 4344, potentially the price gap from Friday morning and 13-day exponential average at 4331/21, but with a fresh hold expected here. Only a close below 4289/86 though would mark a top.”
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