FXStreet notes that the S&P 500 rebound has extended as expected to “fill” the price gap from Monday at 4403/4433. Analysts at Credit Suisse still expect to see a cap here for a fresh leg lower to 4238/30, but with this level to then provide a fresh and important floor.

“Whilst our broader outlook stays positive and we continue to view current price action as a corrective phase, our bias remains for 4433/38 to cap and for further corrective weakness to be seen yet prior to a more secure low being established, especially if our view for rising bond yields is proved correct.” 

“We look for 4433/38 to ideally cap on a closing basis, with a break below near-term support at 4353/48 needed to add weight to this view for a fall back to 4306/01, then what we look to be better support at 4238/30. Our ‘ideal’ roadmap would then be for a floor here for a resumption of the core bull trend."