FXStreet notes that S&P 500 managed to recover off its lows on Thursday but economists at Credit Suisse remain of the view a corrective phase is underway. A close below 4425 today would see a bearish “reversal week” established to add further downside pressure. 

“It is quite possible we may see a bearish ‘reversal week’ if we see a close below key support at 4225 today, further increasing near-term bearish pressures. This is in addition to the broader ‘risk-off’ signals with a base in the USD now seen in place.” 

“We look for a retest of 4368/64, below which is expected to see a test of what we look to be better support at 4328/18 – the key rising 63-day average and the 38.2% retracement of the rally from May. Our bias would be to look for a floor here. A close below 4318 though would instead warn of a more protracted correction lower.” 

“Resistance stays seen at 4418/19 initially, with 4424/28 ideally capping to keep the immediate risk lower.”