The S&P 500 has gapped higher on higher volume. Credit Suisse analysts believe there is room to further strengthen the broader consolidation range.
Initial resistance at 3,902, and then at 3,946.
“A positive end to last week has pushed the S&P 500 into a gap to the upside with higher volume to close back above the short-term 13-day exponential moving average. This should reinforce the sideways range of the past few weeks, with the immediate risk of a deeper recovery within this range.”
“Resistance is initially seen at the top of the downtrend channel from April in 3,902a closure above which should clear the way for the force back to 3,919 and then the late June high at 3,946. Above this level, recovery can extend to 3,974with a more important and lasting price resistance, gaps and averages of 63 days in the 4,010/19which we hope will continue to be a significant barrier.”
“Support looks at 3,833 initially, then the Friday morning price gap in 3,817/3,790. Below here a negative bias in the range needs to be reaffirmed again with support seen below at 3,732/22.”
Source: Fx Street
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