The S&P 500 has now completed a bearish “reversal week”. Anlaysts at Credit Suisse continue to look for a deeper setback to 4568/66 objective and potentially the 63-day average at 4524/20, which is set to hold.

Initial resistance moves to 4623 

“Whilst we treat this ‘reversal week’ with a little caution given the US Thanksgiving holiday last week, we still maintain our call from the beginning of last week for a deeper correction lower. We thus stay bearish for our 4568/66 objective – the 38.2% retracement of the October/November rally.” 

“Whilst we continue to look for the 4568/66 area to hold at first, we would still not rule out a test of the key 63-day average at 4524/20, which we look to prove a solid floor again. A weekly close below 4520 though would warn of a more serious correction lower with support seen next at 4448/38.” 

“Resistance moves to 4623 initially, with the immediate risk seen lower whilst below 4665. Back above 4701/03 though is needed to suggest the worst of the setback is over and core uptrend resumed.”