The S&P 500 has encouragingly stabilized above key support from its rising medium-term 63-day average, now seen at 4526. A close above 4608/13 is needed to increase the likelihood a more important low may be in place and core uptrend resumed, economists at Credit Suisse report.
Close below the 63-day average at 4526 to mark a more concerted correction lower
“A close above the 13-day exponential average and short-term downtrend at 4608/13 is needed to ease the pressure off the 63-day average and increase the likelihood a more important low may again be in place, with key price resistance still seen at 4653/55. Beyond this latter area is in our view needed to confirm the core uptrend has indeed resumed for a move back to the 4744/50 highs/Q4 objective.”
“Support moves to 4589/88 initially, then 4571, with the immediate risk seen higher whilst above 4541. A close below the 63-day average at 4526 remains needed to mark a more concerted correction lower with support then seen next at 4496/95 ahead of 4448/38.”