The SP500 has closed at a new low for the year. Analysts at Credit Suisse remain bearish for a conclusive break below the 200-week MAP for a drop to 3,505/3,494 and then 3,235/3,195.

Initial resistance at 3,646

“With volume rising as the market falls, we maintain our core negative outlook and look for a clear and closing break below the 200-week SMA, currently at 3,589, with support then seen next at the pre-pandemic high Q1 2020 and 50% retracement of 2020/2021 uptrend at 3,505/3,494.”

“Our main target remains the 3,235/3,195 support group, which includes the 38.2% retracement of the uptrend from the 2009 low.”

“Resistance is seen at 3646 initially, with 3671 ideally capping to keep immediate risk lower. However, we will maintain an immediate negative tactical stance while below 3737/58.”