S&P 500 Index to extend the rally towards the 4200 mark – Credit Suisse

S&P 500 has started Q2 strongly and although the rally is now leaving the market in “typical” extreme territory, analysts at Credit Suisse see scope for the rally to extend further yet and look for a move to 4104/09 next and eventually to the at 4200 level. 

See: April to be strong for markets – Morgan Stanley

S&P 500 surges higher to start Q2 

“Although the rally is beginning to now leave the market at what we see as its ‘typical’ extreme – 15% above the 200-day average and also above daily, weekly and monthly Bollinger Bands – RSI momentum is only starting to get overbought and we see scope for the rally to extend further yet.” 

“A knee-jerk pullback should be allowed for ahead of further strength to 4100, then what we look to be a tougher test at 4104/09 – trend resistance from last November as well as Fibonacci projection resistance. We would look for this to cap at first for a pullback, but with a move above expected in due course for 4138 and eventually our 4200 Q2 objective.” 

“Near-term support moves to 4057, with the price gap from yesterday morning at 4034/20 ideally holding to keep the immediate risk higher. Below can see a deeper setback to 3993/73, but with fresh buyers expected here.”