S&P 500: Top to be eventually formed in the 2934/3002 resistance zone – Credit Suisse

S&P 500 remains capped at major resistance at 2934 – the 61.8% retracement of the Q1 collapse – and stretching up to its 200-day average at 3002 – and analysts at Credit Suisse continue to look for a top to form here.

Key quotes

“Although a push higher above here to the 200-day average at 3002 should still be allowed for, our base case remains to look for a top to be established here, especially now with the VIX also at its major support, starting at 27.27 and stretching down to 23.65, which we look to hold.”

“Support is seen at 2921 initially, then 2903/02, below which is needed to clear the way for a move back lower in the range with support then seen next at the 13-day average and gap support at 2876/67, a close below which is needed to add weight to our topping story.”

“A close above 2934 would suggest strength can extend further to the 2955 April high, then what we look to be tougher resistance, starting at 2986 – the beginning of the price gap from early March – and stretching up to the 200-day average at 3002, where we look for a top.”

Posted in FX