FXStreet reports that economists at Credit Suisse note that the S&P 500 has held key support from its 13-day average at 3355/54 as well as its uptrend from June, but with a move above 3400 still needed to negate the recent small bearish “reversal day”.

“The S&P 500 setback has held key 13-day average support, now at 3354, as well as its uptrend from late June (today at 3361) and despite the recent small bearish ‘reversal day’ and bearish RSI momentum divergence the immediate risk still leans slightly higher, even if the risk for a correction lower is seen growing steadily.” 

“Above 3392 is needed to ease the immediate downside bias for a move back to 3400. Beyond here can negate the bearish ‘reversal day’ for strength to trend resistance at 3412 initially, then more importantly at our ‘ideal’ objective at 3432/36. It is from here we continue to look for a correction lower to finally emerge.” 

“Support moves to 3381 initially, then 3361, with a close below 3355/54 still needed to suggest a correction lower is finally underway with support then seen next at 3326, then gap support from early August at 3317/07.”