Russell 2000: A close below 1396/97 marks a large bearish reversal week, important support at 1319 – Credit Suisse

The Russell, as well as S&P 500 and Nasdaq 100, has seen an aggressive move lower and a close today below the 1397 level would confirm a top there with important support at 1319, per Credit Suisse.

Key quotes

“A close below 1396/97 today is needed to see a large bearish ‘reversal week’ which if achieved should then confirm we have indeed seen a significant top and a more concerted move lower can emerge.” 

“Support below 1355/54 is seen at 1334 next, then more importantly at 1319/16 – the 38.2% retracement of the entire rally from the March low, 61.8% retracement of the rally from mid-May and potential uptrend from the March low – and we would look for this to hold at first. A break in due course though can further increase bearish pressure, with support next at 1259/52.”

“Above 1397 on a closing basis can ease the immediate threat of a more important reversal, but with resistance from the 13-day average at 1429 then expected to cap today.”