S&P 500 Index to challenge psychological barrier at 4600/06 – Credit Suisse

The S&P 500 has moved to a new record high above 4546. Analysts at Credit Suisse expect the index to extend its advance towards the 4600/06 region.

Initial support moves to 4542/21

“With momentum strong and with the short and medium-term moving averages having now also posted a bull cross, we maintain our core bullish outlook and look for a sustained break to new highs.” 

“We see resistance next at 4565 ahead of 4574 ahead of the beginning of what we continue to see as its ‘typical’ extreme (10% above the 200-day average) and psychological barrier at 4600/06. We would expect an initial but temporary pause here.”

“Support moves to 4542/41 initially, with the recent price gap at 4524/20 ideally still holding to keep the immediate risk higher. Below can see a setback to 4496, then 4486/76, with fresh buyers expected here.”