FXStreet notes that S&P 500 posted a relatively neutral session on Tuesday, completing an “inverted hammer” candlestick reversal, which reinforces the conviction that the “neckline” to its “head & shoulders” base and the 38.2% retracement of the recent recovery at 3428/18 will hold for a turn back higher, as per Credit Suisse.

“The S&P 500 posted a relatively neutral session on Tuesday, completing a potentially bullish ‘inverted hammer’ candlestick reversal above the “neckline” to its recently completed base at 3428/27 and the 38.2% retracement of the recent recovery at 3420/18. This reversal pattern reinforces our view that 3428/18 will provide a solid floor for the uptrend to resume.” 

“Resistance moves to 3477, above which would bullishly confirm yesterday’s session for strength back to 3516/18, then 3550, above which would trigger a move back to the 3588/94 high, which is also the upper end of its ‘typical’ extreme (15% above the 200-day average). Whilst this should clearly be respected, we look for a break in due course, with our ‘measured base objective’ at 3653.”