The economists of Credit Suisse they expect the S&P 500 correct to the downside, with daily and weekly momentum divergences.
Break above the 4,637 high is needed to ease thoughts of a correction
With daily and weekly RSI momentum now negative and a bearish “key day reversal”, we maintain our recommendation to look for a correction to the downside.
We expect the weakness to continue to support at 4,448/4,439, and then to the lower end of the uptrend channel, now at 4,403. Although we suspect we could see a rally attempt here, we favor a break of this level and a drop to what we view as more important support at the 38.2% retracement of the March/July rally and late-July low. June at 4,328/4,302, where we would look for a new bottom.
Breaking of the 4,637 high is needed to dispel the idea of a correction and instead reaffirm the uptrend to retest the channel top, now at 4,674 and eventually the all-time high of 4,819.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
