S&P 500 Index: Strong start of the year to put the 5000 level in the crosshairs – Credit Suisse

The S&P 500 has surged to a new high and also confirmed a bullish “triangle” continuation pattern. Analysts at Credit Suisse look for this to clear the way for strength and see next resistance at 4825/26 ahead of 4886/87 and eventually the 4970/5000 area.

Strong tone to be maintained for now

“The S&P 500 has confirmed the looked for bullish ‘triangle’ continuation pattern, clearing the way for further strength at the beginning of the year with resistance seen next at 4807/09, then the beginning of what we see as its ‘typical’ extreme (10% above the 200-day average) at 4825/26. 

“Whilst we would look for 4825/26 to cap at first, we look for a move above here in due course with trend resistance from last April now seen at 4886/87.” 

“Big picture, we look for a move to the ‘measured triangle objective” at 4970/75 with scope for 5000.” 

“Support is seen at 4758 initially, then 4744, with the 13-day exponential average and recent price gap at 4736/26 ideally holding to keep the immediate risk higher.”