S&P 500: Resistance at 3190/92 to cap for now – Credit Suisse

S&P 500 strength has extended to next flagged resistance at 3190/82 which is expected to cap near-term to maintain a high-level consolidation range with support seen at 3155, per Credit Suisse.

Key quotes

“The S&P 500 has extended its recovery to just shy of our next flagged resistance from the top of the price gap from early June and potential downtrend from March at 3190/92 and we continue to look for this to cap for now for a fresh move lower in the broader high-level consolidation range.”

“Support is seen at 3165 initially, then 3155, below which is needed to ease the immediate upside bias for a fall back to the lower end of the price gap from yesterday at 3130/25, with fresh buyers expected here. A break can see a retest of the 13-day average, currently at 3105.” 

“Above 3192 can see the risk stay directly higher with resistance seen next at the 3223/33 June highs. Above here can open the door to a challenge on what we see as more important and tougher resistance from the February ‘pandemic’ gap, seen starting at 3260.”