FXStreet notes that the S&P 500 has gapped lower, reinforcing its rejection from the upper end of its “typical” extreme and the Credit Suisse analyst team continue to look for a deeper corrective setback to test support at 3280/60.

“Whilst 3378/80 caps the immediate risk is seen lower with support below 3326 seen at 3307/03 ahead of our ‘ideal’ objective of what we continue to look to be better support at 3280/59 where we will look for a floor – the 38.2% retracement of the rally from mid-May, 23.6% retracement of the entire rally from March, July high and 63-day average. Failure to hold 3260/59 can expose the 200-day average at 3094.”