S&P 500 Index: Support at 3447/28 ideally hold for an eventual test of the 3588/92 high – Credit Suisse

S&P 500 is holding support from the ‘neckline’ to its ‘head & shoulders’ base at 3447/28 and the Credit Suisse analyst team bias remains to view weakness as corrective ahead of an eventual challenge on the 3588 record high. 

Key quotes

“The S&P 500 continues to hold above support from the ‘neckline’ to its base and the rising 13-day exponential average at 3447/28 and we continue to look for a floor above this zone and for the uptrend to resume.” 

“Resistance remains at 3528, above which is needed to suggest the pullback is over for strength back to 3550, above which can see resistance at 3565 next and eventually the 3588/92 high, which is also the upper end of its ‘typical’ extreme (15% above the 200-day average). Whilst this should clearly be respected, we look for a break in due course, with the “measured base objective” at 3653.” 

“Below 3447/18 would throw a serious question mark over the base, with support seen at 3396 next.”