FXStreet reports that S&P 500 has ended the week strongly after again holding key price and 13-day exponential average support at 4130/18. Despite this strength, economists at Credit Suisse still recommend to not chase further strength for now and instead look for a consolidation/corrective phase to emerge within the core uptrend.

“S&P 500 has moved to a new record high for a move again to just shy of our Q2 objective of 4200. Despite this strength, though our core view remains unchanged and with a range of ‘red flags’ and overextension signals in place and with OnBalanceVolume still not confirming the new highs we do not look to chase strength for now and instead we continue to look for a consolidation/corrective phase to emerge within the core long-term uptrend.” 

“Support moves to 4180/75 initially, then 4153, below which can see a retest of 4130/4118. A close below 4118 though remains needed to mark a near-term top to clear the way for a deeper setback with support then seen initially at 4097/96, ahead of 4081 and then 4068.”