S&P 500: Resistance at 3190 to cap and unfold a broad consolidation range – Credit Suisse

S&P 500 is expected to remain in a high-level consolidation range for now, according to analysts at Credit Suisse with resistance at 3190 expected to cap after the index closed yesterday at 3113.49.

Read: S&P 500 pullback expected on a second wave or removal of policy support – JP Morgan

Key quotes

“A neutral ‘inside range’ session for the S&P 500 leaves our immediate outlook unchanged and we continue to look for the unfolding of a broad consolidation phase following the impressive March/June recovery.”

“Immediate resistance is seen at 3153 ahead of the top of the price gap from last week at 3181/90. With daily MACD momentum still holding a bearish cross we continue to look for this to then ideally cap for a move lower in the looked-for range. Above 3190 can see the risk stay higher for a test of the potential downtrend from the February peak, today seen at 3213/17.” 

“Support stays seen at 3104 initially then the price gap from Tuesday at 3076/66. Beneath here is needed to ease the immediate upside to reinforce the broader ranging scenario, with support then seen next at 3044 ahead of the 200-day average at 3017.”