S&P 500 Index holds off support at 4119 to keep the risk higher – Credit Suisse

S&P 500 has held price and 13-day exponential average support at 4119/18 and despite the overextension signals this keeps the immediate bias higher for now for the 4200 mark. Economists at Credit Suisse will continue to look for a consolidation/corrective phase to emerge from here.

Consolidation/corrective phase to ideally emerge from 4200

“The setback in the S&P 500 has been contained by key price and rising 13-day exponential average support at 4119/18 and whilst we remain of the view the market remains seen at its ‘typical’ extreme (the market remains 15% above its 200-day average) the immediate bias is still seen higher for now whilst above 4119/18.” 

“Above 4165 is expected to clear the way for a move back to 4191, then our Q2 objective of 4200 where we would then look for a fresh attempt to set a cap and for a consolidation/corrective phase to emerge. A closing break above 4200 though can keep the immediate risk higher for resistance next at 4225, then near-term trend channel resistance at 4236/38.” 

“Support moves to 4165 initially, then 4138/36, below which is needed for a fall back to retest the 13-day exponential average and price support at 4119/18. Below here remains needed to mark a near-term top to clear the way for a deeper setback with support then seen initially at 4097/96.”