S&P 500 has reached the 4436/56 zone. Strategists at Credit Suisse continue to not chase strength through here for now and look for a temporary and corrective pause to emerge.
A direct and closing break above 4455/59 can see the immediate risk stay higher
“S&P 500 has finally achieved our Q3 objective zone at 4436/56 and whilst we maintain our view of looking for a potential but temporary stall in the rally here, we continue to acknowledge the strong underlying momentum suggesting the ‘path of least resistance’ overall stays seen higher.”
“We look for the top of the range and trend resistance from April at 4455/59 to try and cap for now with support seen at 4416 initially, then 4402/00. Below this latter area is needed to ease the immediate upside bias for a fall back to more important price and gap support at 4381/64, but only below here would mark a near-term top for a corrective phase and a fall back to support at 4350, then 4331/21.”
“A close above 4459 would see the immediate risk stay higher for a move to the psychological 4500 level next, with the upper end of its ‘typical’ extreme (15% above the 200-day average) now at 4556.”