According to the Credit Suisse analyst team, the S&P 500 is projected to be limited at trend/Fibonacci resistance around 4362/68 for a drop down, with support initially seen at 4315/14, then 4298/88.
“With volume reducing on the move higher, we continue to look for this to ideally cap and for a correction lower to arise.”
“Support is initially indicated at 4330/29, followed by the lower end of Friday’s price gap and the recent low at 4315/14. A break below this level would signal a small top, giving credence to our prediction of a downward correction, with support coming next and initially at the 13-day exponential average and price support at 4298/88.”
“However, a closing below 4298/88 and then 4286 is required to signal a longer-term setback and’summer correction,’ with support next projected at 4257.”
“Above 4368, there is less chance of an immediate fall down, implying that the uptrend can continue, with resistance at 4400 and then 4436/56.”/n
