S&P 500 has gapped higher for a fresh and concerted test of key resistance from its 63-day average and price/gap resistance at 4423/43. A close above here would suggest the correction lower is over, with 4465 then seen as the trigger to a move back to the high at 4546, the Credit Suisse analyst team reports.

Close above 4443 to suggest the worst of the corrective setback is over

“A close above 4423/43 would suggest the worst of the corrective setback may already be over with resistance then seen next at the 4465 late September high. Above here should be sufficient to then clear the way for a move back to 4486/87 initially ahead of an eventual retest of the 4546 record high.” 

“If 4443 continues to cap on a closing basis then the potential for a deeper corrective setback will remain seen with support seen at 4430 initially, then 4417.” 

“Below the price gap from yesterday morning at 4387/64 though is needed to warn of a fall back to the 4329 low from earlier in the week.”