FXStreet reports that the Credit Suisse analyst team suggests that below 4373, the S&P 500 index can see a price top established for a test of the 63-day average at 4315.

“With daily and weekly RSI momentum divergences in place and a bearish ‘reversal week’ threatening (seen confirmed on a close below 4225 on Friday) bearish pressures look to be increasing. Further reflecting this remains see the broader ‘risk-off’ moves emerging in EM equity markets and China as well as now strength in the USD and weakness in commodities.” 

“We continue to look for further weakness with key price support seen at the August lows at 4381/73. Below here can see a top complete to further increase bearish pressure to expose the 63-day average, currently at 4315.”

“Resistance is seen at 4418 initially, with 4424/26 ideally capping to keep the immediate risk lower. We shall though maintain an immediate tactical bearish bias whilst below 4462.”