The S&P 500 Index has been under pressure in the last two sessions, however, the key support at 4,455/50 still holds for now. Only a break below here would send short-term risks back down the range, according to analysts at Credit Swiss.
S&P 500 set to test resistance at 4,663/68 while hovering above key support at 4,455/50
“The S&P 500 is holding around its key 63- and 200-day moving averages at 4,490/50 and short-term MACD momentum remains fully positive, even if it is starting to reverse. Therefore, we remain directly biased to the upside while above 4.455/50 and await a test of the 78.6% retracement of the 2022 dip and price resistance at 4.663/68.”
“Above 4663/68 would open the door for a move to 4707/12 next, then what looks like stiffer resistance starting at 4744/49. We expect a top around this area, in line with our broader medium-term view that the market will remain trapped in a broader mean-reversion phase.”
“Key support is seen at the 63-day moving average, price lows and the 38.2% retracement of the recovery from the March low, which coincides at 4,455/50. Only a break below here would send short-term risks back down into the range, with next supports seen at 4376, then 4252.”
Source: Fx Street
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