S&P 500 to unfold a lengthier consolidation phase before core uptrend resumes - Credit Suisse

FXStreet notes that the S&P 500 Index has achieved the Credit Suisse analyst team's target/resistance at 3429/44 and they continue to look for this to cap for now, with support seen at 3348, then 3327/23.

“The S&P 500 has extended its recovery to our recovery target zone, seen starting at the mid-September highs at 3425/29, and stretching up to the 61.8% retracement of the fall from September at 3444. This has capped as expected, with the subsequent sharp rejection resulting in the completion of a bearish ‘reversal day’ (although on relatively muted volume) and this should add weight to our scenario in looking for the unfolding of a lengthier consolidation phase.

“Big picture, we continue to view this as a temporary consolidation ahead of the core uptrend eventually resuming, with a clearer larger base now potentially forming.” 

“Immediate support is seen from the lower end of the recent price gap at 3348/47, then, more importantly, the recent lows at 3327/23, which we continue to look to ideally hold. A break though would curtail thoughts of a larger base for now with support then seen next at 3298/93, then 3279.”