S&P 500: Topping process – Credit Suisse

Strategists at Credit Suisse continue to look for a top below the 61.8% retracement of the Q1 collapse at 2934, with support seen at 2863/60, then 2837 after analyzing the S&P 500 chart.

Key quotes

“We continue to look for a topping process at the upper end of our 2883/2934 recovery objective zone, in line with our core view that the recovery from late March has been a corrective rally only, especially given the poor volume pattern.”

“Immediate resistance is seen at the 63-day average at 2898, which we look to try and cap on a closing basis, with support seen at 2863/60 initially, then the lower end of Monday’s price gap at 2843/37.” 

“Above 2898 can see strength extend back to retest 2921, potentially the 61.8% retracement at 2934, but with a fresh cap expected here.