S&P 500 Index to extend the uptrend with next resistance at 3720/25 - Credit Suisse

FXStreet notes that the S&P 500 has finally cleared key trend resistance from February and on markedly improved volume. Economists at Credit Suisse maintain a bullish outlook with resistance above the 3700 psychological barrier seen next at 3720/25.

“The S&P 500 has finally cleared its key inflection point at confirmed trend resistance from February, with OnBalanceVolume surging to clear new highs and with RSI momentum also finally to start moving higher.”

“Our main concerns remain the ‘euphoric’ state of the rally - 91% S&P 500 stocks are now above their 200-day average (a level not seen since 2013) and the market is well above the upper end of what we see as its ‘typical’ extreme (15% above its 200-day average), but these on their own do not, for now, prohibit us looking for further gains and we maintain our immediate bullish bias.” 

“Immediate resistance stays seen at the 3700 psychological barrier, ahead of 3720/25, which we look to cap at first. Above in due course though should see what we look to be a tougher test of a cluster of Fibonacci projection levels in the 3765/85 band. Big picture though, we continue to eventually look for the “measured triangle objective” at 3900.”