S&P 500 has extended its rally as looked for to retest the record high at 4546. Whilst a fresh setback from here should be allowed for, analysts at Credit Suisse continue to look for a sustained break to new highs in due course.

Bullish bias whilst above 4448/38

“The steady move higher in the S&P 500 has extended as looked for to just shy of the 4546 record high. Given the importance of 4546 a fresh pause here should be allowed for, but our core view remains bullish and we continue to look for a clear break to new highs in due course.”

“We would see resistance next at 4574 ahead of the beginning of what we continue to see as its ‘typical’ extreme (10% above the 200-day average) at 4592/4601.” 

“Support from the price gap from yesterday morning at 4524/20 needs to hold to keep the immediate risk higher. Below can see a setback to 4496, then 4486/76, with fresh buyers expected here.”

“We shall maintain a tactical bullish bias whilst above the 13 and 63-day averages and price/gap support at 4448/38.”

See – S&P 500 Index: Equity market optimism is justified – UBS