S&P 500 Index to accelerate its race higher beyond 4600 – Credit Suisse

The S&P 500 has broken the much-tested trend resistance from April. Analysts at Credit Suisse now expect the index to continue higher, with resistance seen next at 4552, before the more important 4600 and eventually 4657.

See: S&P 500 to hit the 5,000 level by the end of next year – UBS

More positive near-term outlook

“Due to the strong move higher though and the clear break of the trend resistance from April, we now expect the trend to extend directly higher, with resistance seen next at 4550/52, ahead of 4565.” 

“We do not see the market at the upper end of its ‘typical’ extreme though until it reaches 15% above its 200-day average, which is still some considerable distance away at 4657. 

“Immediate support is seen at 4500 and then 4469, the recent 26th August daily low, before the price gap at 4450/42, a close below which can also see the 13-day exponential average removed to suggest a false breakout and instead suggest a pullback towards 4419, potentially 4407/06.”