S&P 500: February gap at 3328/38 to cap for a pullback – Credit Suisse

The S&P 500 Index has extended the rally to what is seen as a much tougher resistance test from the top of the February “pandemic” price gap at 3328/38. The Credit Suisse analyst team continues to look for this to cap for now and for a pullback/consolidation to emerge. 

Key quotes

“S&P 500 strength has extended to our next flagged resistance/objective and what we continue to see as important and what we would expect to be tougher initial resistance at the top of the February price gap at 3328/38.” 

“Whilst the underlying trend remains higher, we continue to expect 3328/38 to remain a tough barrier and look for this to cap for now for a fresh consolidation phase. Support for a setback moves to 3319/17 initially, then the lower end of the price gap from yesterday at 3307. Beneath here is needed to add weight to our consolidation scenario with support next at 3286/85, then 3271/61, but with this latter area then ideally holding.” 

“A direct and closing break above 3338 would be seen clearing the way for a move to 3373 next and eventually a challenge on the 3394 record high.”