S&P 500: Spotlight on the 3394 record high with scope for an overshoot to 3436 - Credit Suisse

FXStreet reports that the S&P 500 Index has quickly and abruptly negated Tuesday’s bearish “reversal day”, turning the spotlight on the 3394 record high. Whilst momentum is starting to slow, economists at Credit Suisse see scope for a move to test the 3432/36 mark, which is expected to cap for a consolidation phase.

“Whilst we continue to see signs upward momentum is slowing and the market is now above what we see as its ‘typical’ extreme (10% above its 200- day average, currently at 3368) we look for a challenge on the 3394 record high, with scope for an overshoot to potential trend resistance, today seen at 3412, which we would look to cap at first.” 

“Bigger picture, our ‘ideal’ roadmap would be for a test of Fibonacci projection resistance at 3432/36, but with this then capping for a consolidation/corrective phase.” 

“Support at 3371 needs to hold to keep the immediate risk higher. Below can see a retreat back to the beginning of the price gap from yesterday morning at 3355. Overall though key near-term support is seen at the recent low and 13-day average at 3326/12, and only a close below here would suggest a correction lower is finally underway.”