The S&P 500 has seen a strong recovery above the short-term resistance of its 13-day exponential average and its recent high at 4,299, along with increased volume. This keeps the thoughts of an extension of the consolidation phase, which could still evolve into a bearish “triangle” patternaccording to analysts at Credit Suisse.
Next key resistance at 4.363/87
“The S&P 500 has broken through key short-term resistance of its 13-day exponential average and its recent high in 4,299 along with an increase in volume. This keeps thoughts of a longer consolidation phase, and indeed a deeper recovery, still could eventually evolve into a bearish continuation pattern like a ‘triangle‘”.
“Resistance is seen below at the top of the early March gap at 4,363 and then the 38.2% retracement of the 2022 crash and downtrend from early January in 4.0384/87. Our bias is to try to find a boundary in this region, for now, to define the top of the possible “triangle”.”
“Above 4,387 would suggest the recovery may extend further to March high at 4,417we would possibly expect there to be much stiffer resistance in the 200-day average at 4,468.”
“Initial support is seen at 4,323 and then in the exponential average of 13 days in 4,288/84. howeverbelow 4,252 need to see a shift back down in risk to see a fall back to those recent lows of 4,173/58.”
Source: Fx Street
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