The S&P 500 Index is now facing a key test of technical resistance at the potentially bearish 200-day moving average (DMA), down 61.8% on 4327/70and according to economists Credit Suisse there is potential to see a significant high here
MACD weekly momentum maintains its bullish cross
“Although the weekly MACD momentum has crossed to the upside, we continue to look for a potentially important top at the low of the 200 DMA, potential bear trend from the beginning of the year and the 61.8% retracement of the 2022 dip at 4327/70. “
“The short term support is seen at 4177with a break below 4117/07 seen as necessary to add weight to our view for a drop back to the 63-day moving average, now at 3974.”
“A cclosing above 4370 would suggest that the force may spread furtherwith resistance at 4513, and then the 78.6% retracement of the 2022 drop at 4566″.
Source: Fx Street