S&P 500 Index: Scope for further strength towards the 4602/39 area – Credit Suisse

The S&P 500 maintains a strong tone. Analysts at Credit Suisse see scope for further strength yet to the 61.8% retracement of the January collapse at 4591, potentially the 63-day average at 4639, but with this then ideally capping.

Initial support seen at 4526/24

“We see scope for the recovery to extend further yet with resistance seen next at the 61.8% retracement of the January sell-off at 4591, then the potential downtrend from the beginning of January and price resistance at 4602/12. With the 63-day average seen not far above at 4639, we look for a cap in this 4602/39 zone to define the top of a broader sideways range.”

“Support is seen at 4526/24 initially, then 4504, with a break below 4494/84 needed to ease the immediate upside bias for a retreat back to 4453, then a retest of the 200-day average at 4439.”