NFXStreet notes that S&P 500 has confirmed its flagged “head & shoulders” base above the mid-September highs and 61.8% retracement of the fall from September at 3429/44 and analysts at Credit Suisse look for a resumption of the core uptrend. 

“The S&P 500 has as suspected easily reversed its bearish ‘reversal day’ from Tuesday and has pushed above key resistance from the mid-September highs and 61.8% retracement of the fall from September at 3429/44 (although on noticeably low volume). This suggests the flagged ‘head & shoulders’ base is now in place and with daily MACD momentum having already turned higher we look for a resumption of the core uptrend.” 

“We see resistance at 3495 initially ahead of the 78.6% retracement of the September fall at 3507.” 

“Support is seen at 3428 initially, with 3419 now ideally holding to keep the immediate risk higher. A break can see a pullback to 3395/85, but with better buyers expected here.”