S&P 500: Resistance at 3190 to cap the recovery, lengthier consolidation phase – Credit Suisse

FXStreet notes that S&P 500 has extended the recovery from the 200-day average at 3016 but analysts at Credit Suisse look for the top of the price gap from last week at 3190 to cap further strength near-term and for a consolidation/corrective phase to unfold.

“The S&P 500 has extended its recovery from its rising 200-day average, now at 3016, as well as the 23.6% retracement of the March/June rally and this leaves the market testing resistance from the price gap from last week, seen starting at 3124 and stretching up to 3190.” 

“With daily MACD momentum still holding a bearish cross, we look for this latter 3190 resistance to then ideally cap for the unfolding of a broader consolidation range. Above 3190 can see the risk stay higher for a test of the potential downtrend from the February peak, today seen at 3219.” 

“Support is seen at 3104 initially then the price gap from yesterday at 3076/66. Beneath here is needed to ease the immediate upside to reinforce the broader ranging scenario, with support then seen next at 3044 ahead of the 200-day average at 3016.”