S&P 500 has seen a clear break and close above key resistance from its 63-day average at 4448/28. With daily momentum turning higher again this suggests the correction lower is over, with resistance seen at 4486/89 next and eventually back at the high at 4546, analysts at Credit Suisse report.
Support at 4448/28 holding to keep the immediate risk higher
“The S&P 500 maintains the strong tone after closing above key resistance from its 63-day average and price gap from late September at 4423/43 and with daily RSI momentum holding a base and with daily MACD momentum having crossed higher this suggests the worst of the corrective setback may already be over.”
“Resistance is seen next at the 78.6% retracement of the September/October fall and price resistance at 4486/87. An initial pause/pullback from here should be allowed for, but with a break in due course expected for a move to 4520/30 next and eventually a retest of the 4546 record high.”
“Support from the price gap from Friday morning and 63-day average at 4448/28 holding can keep the immediate risk higher. A closing break can see a deeper setback to the 13-day exponential average at 4395, but with fresh buyers expected here.”