S&P 500 Index to retest the 4223/4199 key support cluster – Credit Suisse
The S&P 500 is expected to continue to hold the 61.8% retracement of the January/February rally at 4365 for now. However, analysts at Credit Suisse maintain their broader negative bias for a clear break in due course and a retest of the 4223/4199 key support cluster.
Above 4451/53 to see a deeper rebound to 4484/86
“We look for some fresh consolidation above the 61.8% retracement of the January/February rally at 4365 for now but we maintain our broader negative view following the prior rejection from our recovery target and key resistance at 4491/95.”
“Post a pause, we look for a retest and then break below 4365 with support then seen next at 4292 and eventually the major support cluster at 4223/4199. Failure to hold here would mark a major top.”
“Resistance is seen at 4426 initially, then 4451/53, which we look to try and cap. Above can see a deeper rebound to the 13-day exponential average at 4484/86, but with this expected to now prove a tougher barrier.”
See: S&P 500 Index needs to recapture 4600 to extend up-move – SocGen
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