The S&P 500 stays seen at risk to a deeper corrective setback to the key 63-day average, currently at 4392. The Index is set to find a floor here, looking for a resumption of the core uptrend, as reported by Credit Suisse.
See:
- Three factors continue to push equity markets gradually higher – BMO
- Three factors point to a pretty tough environment for equities – BMO
VIX spotlight stays on its key 200-day average at 20.00
“S&P 500 remains seen under pressure to see a deeper corrective setback and we look for a clear break of the uptrend from July at 4459/58. We would then see support next at the 38.2% retracement of the rally from mid-July at 4428/26, then what we look to be better support from the rising 63-day average and 50% retracement at 4392/89. We now look for this latter area to then prove a stronger floor and will look for a fresh low here for a resumption of the core uptrend.”
“Resistance moves to 4476 initially, with 4493/98 now ideally capping to keep the immediate risk lower. Above can see a recovery back to 4520/30, but with fresh sellers expected here for now.”
“The VIX spotlight remains on its key 200-day average at 20.00, a sustained hold above which would warn of a move to the top of its two-month range at 24.44/74, adding weight to the view for a deeper setback in the market itself.”