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The S&P 500 Index has neutralized its recent bearish “reversal day” but has been unable to sustain its brief move to a new high and the Credit Suisse analyst team remains wary of directly chasing further strength for now.
Key quotes
“S&P 500 has neutralized its recent bearish ‘reversal day’ on even higher volume but the market has been unable as yet to sustain its move to new highs and is still capped at our next objective of 3765/85. With daily RSI momentum also still holding a bearish divergence we remain wary of immediately chasing strength directly further from here.”
“Whilst support at 3697/95 holds the upside should still probably be given the slight benefit of the doubt for now, but with a break above 3785 needed to add momentum back to the rally with resistance then seen next at 3800 ahead of 3825/32 and eventually the ‘measured triangle objective’ at 3900.”
“Below 3695 would increase the risk we may be seeing the formation of a near-term top for a slide back to 3680, then price and ‘neckline’ support at 3668/63. Beneath here is now needed to see a small top established to open the door to a corrective phase lower, with support seen next at 3636/33.”