S&P 500 Index to continue piling up gains towards 4200 – Credit Suisse

S&P 500 strength has extended to the top of its multi-year channel at 4125/30, with the index now seen moving into typical “extreme” territory. Credit Suisse’s bias though is for the rally to extend further yet to 4200, where the market would then be highly alert to signs of a potential top and correction/consolidation. 

S&P 500 is now above the top of its “typical” extreme

“We maintain an immediate bullish stance for now and continue to look for the rally to extend further, ideally to our 4200 Q2 objective, we now hold a more cautious footing given the market is seen in “extreme” territory.” 

“We see resistance next at 4138 ahead of Fibonacci projection resistance at 4175/79. Our ‘ideal’ roadmap remains for a push to our 4200 target but we essentially now look for a top in this 4175/4200 zone.” 

“Near-term support moves to 4115, then 4108, with the price gap from Friday morning at 4097/96 needing to hold to keep the immediate risk higher. Below can see a fall back to 4068.”