The S&P 500 Index has scope to see further near-term consolidation but with the broader trend still leans higher for an eventual move to 3900, the Credit Suisse analyst team reports.
“S&P 500 has removed near-term price and 13-day average support at 3777/65 and although a bullish ‘outside week’ remains in place this raises the prospect of further near-term consolidation/corrective weakness prior to the broader uptrend resuming.”
“Resistance is seen at 3785/89 initially, with a break above 3796 needed to ease the immediate downside bias for a retest of the 3827/23 highs. Above here remains needed to reassert the core uptrend with resistance seen next at 3866/68 and eventually the ‘measured triangle objective’ at 3900, from which we will then look for a lengthier consolidation/correction to emerge.”
“Support moves to 3750 initially, then the lower end of the recent price gap at 3742/38. Beneath here can further increase the immediate downside risk for a fall to 3705/3695, but with fresh buyers expected here.”
“Support from the ‘outside week’ low at 3663 needs to hold to maintain a tactical bullish bias. A break would instead see a top complete to warn of a more concerted phase of (still) corrective weakness.”
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