S&P 500 Index: Resistance at 4483/98 caps to maintain the risk for a deeper corrective setback – Credit Suisse

The S&P 500 Index remains capped below resistance at 4485/98. Whilst below here there will remain the threat of a deeper corrective setback, with the key 63-day average now at 4403, the Credit Suisse analyst team reports.

Close above 4498 to increase the likelihood the corrective setback is over

“The S&P 500 remains capped at the 13-day exponential average and price resistance at 4483/98. Whilst capped here the threat of a deeper corrective setback can remain with support seen at 4459/58 initially, then 4436/26. 

“Beneath 4436/26 can see a fall to what we still look to be better support from the rising 63-day average at 4407/03, which we look to remain a solid floor.”

“A weekly close below 4403 though would instead warn of a more concerted phase of still corrective weakness.”

“A close above 4498 would increase the likelihood the corrective setback is already over, clearing the way for a test of 4520/30 next. Whilst we would expect sellers here for now, above in due course should see a move back to the 4546 high, then 4565.”