The S&P 500 Index has failed to sustain its move to new highs, leaving in its place a small bearish “reversal day” and support at 3650/44 must not be lost to continue to hold immediate risk to the upside, según Credit Suisse.
Key statements
“With the market remaining in a ‘euphoric’ state (91% of the S&P 500 stocks are above their 200-day average and the market is well above the upper limit of what we see as their ‘typical ‘), the rally is now seen in a more critical and vulnerable state and supports must now be watched very carefully, especially with the daily slowdown in MACD momentum. “
“The short term key is still 3650/44: key price / gap support and 13-day exponential average. We need to see this hold to suggest that immediate risk may remain higher with resistance initially seen at 3.698, above which is needed to clear the way for the force back to 3.712, then 3.720 / 25, which we saw. as a limitation at the beginning. Higher up in due course should be what appears to be a tougher test of a group of Fibonacci projection levels in the 3765/85 area. “
“However, a close below 3.644 would suggest that a more concerted downside correction is taking place with support to be seen next at 3625/22, then the key price gap of late-3594/78. November”.
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