The S&P 500 Index has staged a strong rebound on increased volume. However, the market still needs to see 4485/98 cleared to suggest the corrective setback is over, in the view of analysts at Credit Suisse.
See S&P 500 Index: There is room for a plunge to the 4300 level – SocGen
63-day average at 4399 to remain a solid floor
“A break above the 13-day exponential average and price resistance at 4485/98 would increase the likelihood that the corrective setback may already be over, clearing the way for a test of 4520/30 next.”
Whilst we would expect sellers at 4520/30 for now, above in due course should see a move back to the 4546 high, then 4565.”
“Whilst 4485/98 caps, the threat of a deeper corrective setback can remain with support seen at 4459/58 initially, then 4436/26.”
“Beneath 4436/26 can see a fall to what we still look to be better support from the rising 63-day average at 4399, which we look to remain a solid floor.”
