FXStreet notes that S&P 500 has started Q2 strongly and although the rally is now leaving the market in “typical” extreme territory, and analysts at Credit Suisse see scope for the rally to extend further yet and look for a move to 4104/09 next and eventually to the at 4200 level. 

“Although the rally is beginning to now leave the market at what we see as its ‘typical’ extreme – 15% above the 200-day average and also above daily, weekly and monthly Bollinger Bands – RSI momentum is only starting to get overbought and we see scope for the rally to extend further yet.” 

“A knee-jerk pullback should be allowed for ahead of further strength to 4100, then what we look to be a tougher test at 4104/09 – trend resistance from last November as well as Fibonacci projection resistance. We would look for this to cap at first for a pullback, but with a move above expected in due course for 4138 and eventually our 4200 Q2 objective.”