S&P 500 to establish a fresh top below 3116/13 – Credit Suisse

S&P 500 has reversed its move above its downtrend from February at 3190, rejecting its 3233 June high to reinforce the broader range. Only below 3116/13 would mark a near-term top, according to analysts at Credit Suisse.

Key quotes

“A rollercoaster session for the S&P 500 yesterday as the market gapped above its downtrend from February at 3190 at the open to then test and decisively reject key resistance from its 3233 June high, resulting in a close back below the downtrend, seen at 3182 today.”

“Key supports for today and the rest of the week are seen starting at 3136 and stretching down to 3116/13, which include the 13-day average and last week’s low. Below here is needed to suggest we have seen a top established at the top of the sideways range with support then seen next at 3070/67 and eventually more importantly at the 200-day average at 3034/28.” 

“Resistance is seen at 3182 initially, above which can ease the immediate downside bias with resistance next at 3199 and then 3214/24.”