S&P 500 is expected to see a deeper push into the zone at 4436/56. Nevertheless, economists at Credit Suisse continue to look to not chase strength through here for now and look for a “summer consolidation/correction” to emerge.
Key near-term support remains seen at 4386/64
“Weakness has yet again been contained by high-level support from the recent low, the price gap from last Friday morning and 13-day exponential average at 4381/64. This keeps the immediate risk higher for a more concerted push into our Q3 objective zone at 4436/56, also trend resistance from April.”
“Whilst we continue to view the core trend as bullish, our bias remains not to chase strength through here for now and for a ‘summer consolidation/correction’ to emerge. We have to acknowledge though the strong underlying momentum and a close above 4456 would see the immediate risk stay higher for a move to the psychological 4500 level next.”
“Near-term support moves to 4410, then 4398, with key still the 4386/64 zone. Only a close below here would mark a near-term top for a corrective phase and a fall back to support at 4350, then 4331/21.”