S&P 500 Index: Technical indicators point to further weakness on a 2-4 week horizon – Credit Suisse

S&P 500 remains in a short-term consolidation phase. Key short-term support is seen at 3739/15, below which would open up a retest of the 2022 low at 3637, analysts at Credit Suisse report.

Recent consolidation phase to extend further

“The S&P 500 remains in a short-term consolidation phase after recently holding above the bottom of its trend channel from April, however, the market remains below key moving averages and momentum indicators stay negative, which points to further short-term weakness over the next 2-4 weeks.” 

“Support is seen at 3739/15, below which would open up a retest of the 3637/33 2022 low. We note that the next support below here is seen at 3600/3594, then the key 50% retracement support at 3519/3500.” 

“Resistance is seen at 3946, then the price gap from earlier in June, starting at 3974 and stretching up to 4017/19, which also coincides with the 38.2% retracement of the March/June fall and the top of the trend channel from April. We look for a cap here if reached to maintain the short-term downward pressure on equity markets. A break would significantly improve the short-term technical outlook, with the next key resistance seen at 4088/4101.”