Nasdaq

Clearance of 3950/3951 Could Send the S&P 500 Towards 4070/4075 – Credit Suisse

Today’s disappointing consumer inflation data has allowed the US Indices to recovery some of the ground lost last week. The S&P 500 index’s recovery move has enabled it to violate a crucial trendline, restoring upside bias. This much is recognized by Credit Suisse, which still maintains its outlook of a lengthy consolidation phase within the core bullish trend. The bank sees the consolidation as likely over if the price breaches 3929/3931, with strengthening above 3950/3951 targeting 4070/4075 next. 

Downside targets for Credit Suisse are 3852/3847, and 3819, below which 3799 and 3723 remain possible retest support areas.

Technical Levels to Watch

The active daily candle has breached the descending resistance trendline but needs to maintain a 3% penetration close above this level to confirm the breakout. This breakout opens the door for the S&P 500 index to target the existing record high at 3950.4. A clearance of that level allows bulls to target new highs, with 4005.9 appearing to be a likely candidate for the initial barrier to the bullish breakout above 3950.4.

Advertisement

On the flip side, failure to confirm the break of the descending trendline could lead to a pullback, retesting 3870.0. If that level fails to hold, then 3823.9 and 3765.1 are potential downside targets. 

Don’t miss a beat! Follow us on Telegram and Twitter.

S&P 500 Daily Chart

More content

Related Posts: