FXStreet reports that S&P 500 remains capped as expected at its record high and two-month channel top at 3984/93 and economists at Credit Suisse look for the market to stay capped here for now for a fresh pullback into the range.

“The S&P 500 stays sidelined near-term with the market still capped as expected at key resistance from the range highs and two-month channel top at 3984/93. Whilst our broader outlook stays bullish for an eventual move to 4070/75, we suspect this resistance remains intact for now and we see a fresh pullback into the range.” 

“Support remains at 3943/33 initially, below which can see a fall back to the price gap from last Friday morning at 3918/10. We look for this to then ideally hold to keep the immediate risk higher in the range. Below though would instead open the door to a retest of last week’s low and the 63-day average at 3858/54.”