S&P 500 Index to push higher into the 4436/56 zone – Credit Suisse
S&P 500 stays on course for a deeper push into the region at 4436/56. However, economists at Credit Suisse continue to look to not chase strength through here for now and look for a “summer consolidation/correction” to emerge.
Key near-term support remains seen at 4386/64
“S&P 500 maintains an immediate upside bias following its recent and second successful defence of high-level support from the recent low, price gap from last Friday morning and 13-day exponential average at 4381/64. This keeps the immediate risk higher for a more concerted push higher into our Q3 objective zone at 4436/56, also trend resistance from April.”
“Whilst we continue to view the core trend as bullish, our bias remains not to chase strength through here for now and for a “summer consolidation” to emerge.”
“We have to acknowledge though the strong underlying momentum and a close above 4456 would see the immediate risk stay higher for a move to the psychological 4500 level next, with the upper end of its ‘typical’ extreme (15% above the 200-day average) now at 4550.”
“Near-term support moves to 4416, then 4402/00, with 4381/64 ideally still holding. Only a close below here would mark a near-term top for a corrective phase and a fall back to support at 4350, then 4331/21.”
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FXStreet Insights Team
FXStreet
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