The S&P 500 experienced an aggressive fall of almost 2% yesterday. The analysts of Credit Suisse look for a clear break (and ideally a weekly close) below 4199 to signal a major trend reversal to the downside with next significant support seen at 3855/15.
A break of 4,223/4,199 to set up a major “heads-shoulder” top formation
“We look for a clear break (and ideally a weekly close) below 4,199 to mark the completion of a large ‘head and shoulders’ top to signal a major trend reversal to the downside. So we would see the next support at 4,122/17 before the May lows of last year at 4,061/57.”
“While we would look for an initial hold at 4,061/57, we would expect a break in due course with the next significant support seen at the 38.2% retracement of the entire 2020/2021 bull market at 3,855/15. However, the “measured upper target” looks lower at 3.625/20″.
“Resistance is now seen at 4267 initially, then 4310, with immediate risk seen lower below 4342.”
Source: Fx Street
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