analysts at Credit Suisse apprise that S&P 500 ideally holds below resistance at 3319/29 to keep its immediate risk lower for a deeper corrective setback to 3204/00, potentially the 200-day average at 3104.

“The S&P 500 gapped sharply lower on Monday at the open and although the market subsequently managed to recover a good proportion of these losses in the afternoon the price gap from yesterday morning remains intact and with the market still below its 63 and 13-day averages we continue to look for a deeper corrective setback to emerge.”

“Immediate resistance is seen at 3286/92, with the top of the price gap from yesterday at 3319 now ideally capping to keep the immediate risk lower.”

“Support is seen at 3259/57 initially, beneath which should see a move back to 3229 and then a cluster of price supports at 3204/3198, which we look to hold at first. A direct break though can expose the 200-day average at 3104.”