The S&P 500 has turned down to take the long-awaited test of the 4,365 level. Credit Suisse analysts maintain a core negative outlook for a break below here for a retest of key support group 4.223/4199.
S&P 500 will post a major “head and shoulders” top below 4,199
“We continue to view the recent bounce as corrective only and look for a clear break below the recent low and the 61.8% retracement of the Jan/Feb rally at 4,365 in due course, with support seen next at 4,292 and eventually , major support group at 4.223/4199, including the 23.6% retracement of the entire 2020/2021 uptrend and the January low.”
“Although a fresh hold at 4,223/4,199 should be sought, the completion of what we see as major highs in the credit markets is seen to increase the risk of a major top here as well. Below 4,199 would mark the completion of a large ‘head and shoulders’ top to signal a major trend reversal to the downside with the next significant support seen at 3,855/15″.
“Resistance is seen at 4,430 initially, with 4,456//90 now an ideal limit.”
Source: Fx Street
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