S&P 500 Index to extend its race higher on a break above 4475 – Credit Suisse

S&P 500 is pushing above the top of the 4436/56 zone as the market extends its low volatility grind higher. According to economists at Credit Suisse, a break above trend resistance from April at 4472/75 is needed to keep the trend directly higher.

S&P 500 is pushing above the 4436/56 region

“A bullish ‘outside day’ for S&P 500 although on very low ‘summer’ volume as the market extends its relentless low volatility grind higher. This sees the market pushing just above the top of our 4436/56 Q3 objective zone, but with strength still capped for now by trend resistance from April, today seen at 4472/75.” 

“Whilst we look for a fresh pullback from 4475, a direct break can see the immediate risk stay higher for a move to the psychological 4500 level next, with the upper end of its ‘typical’ extreme (15% above the 200-day average) now at 4570/80.”

“Support is seen at 4451/49 initially, then 4436, with a break below the 13-day average and price support at 4425/21 needed to ease the immediate upside bias for a fall back to 4402/00, with more important price and gap support still seen at 4381/64.”