S&P 500 has moved to the 4436/56 Q3 objective of the Credit Suisse analyst team. Nonetheless, they do not see an “extreme” until the 4562 level.
Weekly RSI maintains its bearish divergence
“The S&P 500 has achieved our 4436/4456 Q3 objective and with daily and weekly RSI momentum holding bearish divergences our bias remains to not chase the market above here for now and see scope for a temporary pause.”
“Above 4456 though in due course post a consolidation can see a move to the psychological 4500 level, then upper end of the ‘typical’ extreme, now at 4562 (15% above the 200-day average) but with a fresh cap expected here.”
“Below support at 4381/64 is needed to mark a minor top for a pullback to the 63-day average at 4300/4285, but with a floor expected here.”
“Volume is starting to stall, increasing the risk for a pause in the uptrend. Breadth measures though stay bullish and continue to reinforce the underlying uptrend.”
