S&P 500 to lose mild upside bias below 3116 – Credit Suisse

S&P 500 has held key price and 13-day average support, starting at 3144 and stretching down to 3116 to keep the immediate risk higher. Only below 3116/13 would warn a further correction lower, according to analysts at Credit Suisse.

Key quotes

“The S&P 500 yesterday tested and is so far holding what we have flagged as key support, seen starting now at its 13-day exponential average at 3144 and stretching down to last week’s low at 3116 and the subsequent rebound has recovered much of the losses from Monday. With the market also back above its downtrend from February this sees a mild upside bias again in what remains seen as a broader sideways range.”

“Resistance is seen next at 3214, above which can see a move back to 3224, then the 3233/35 highs, with fresh sellers expected here. Above can see a challenge on the bottom of the February ‘pandemic’ gap at 3260.” 

“Support is seen at 3166, then the 13-day average and price support at 3154/44, which we look to try and hold. Only below 3116/13 would mark a top to warn of a more concerted correction lower within the broader range.”