S&P 500 has held key 13-day exponential average and price support at 4436/25 as looked for to see its accelerated uptrend maintained. However, economists at Credit Suisse remain of the view we are getting closer to a corrective phase.
See: S&P 500 Index to decline 10% and end the year at the 4000 level – Morgan Stanley
Key support at 4436/25 holds to maintain the accelerated uptrend
“Early weakness was contained at key high-level support from its 13-day exponential average and price support at 4436/25. The subsequent strong recovery then saw the S&P 500 surge to new record highs. Although we suspect this can allow the market to push a touch higher yet, we remain of the view that we are getting closer to a peak.”
“Support at 4468/66 holding can keep the immediate risk higher for the top of the weekly Bollinger band and psychological 4500/03 level, which we would look to cap at first. A direct break though can see resistance next at 4516, with the upper end of its ‘typical’ extreme (15% above the 200-day average) still seen at a distant 4592.”
“Below 4466 can see a retreat back to 4450, with key support still seen at 4437/25. A close below here is needed to mark a near-term top to suggest the rally has become exhausted, with support seen next at 4402/00.”