Although there is scope for further consolidation in the near term, the S&P 500 Index is showing signs of strengthening the uptrend, say Credit Suisse economists, who are targeting 3,900.
“Another consolidation session for the S&P 500 as the uptrend comes to a halt and while it should be allowed to extend further, with a large bullish ‘outside week’ in place, we remain bullish overall.”
“At resistance above 3827/32, it follows next at 3866/68 and eventually the ‘measured triangle target’ at 3900. With a bunch of additional Fibonacci projection resistors, also seen here and extending to 3925/30, we remain in our call to seek a cap here for a new and probably prolonged phase of consolidation. Instead, if the force extends directly, we see resistance below at 4000, then at 4070/75 “.
“Support is seen at 3792 initially, then 3777, with better support seen from last Thursday’s gap, which starts at 3765 and extends to 3748/38, and also now the 13-day exponential average, where we expect some support. We maintain our immediate tactical bullish bias, albeit above last week’s low of 3663. “