The S&P 500 Index looks likely to see a lengthier consolidation before resuming its core uptrend towards 4830, economists at Credit Suisse report.

Weekly close below the 63-day average at 4546 to warn of a more damaging correction

“We suspect 4744/50 continues to cap for now for a lengthier phase of consolidation. Post this phase though we continue to look for a break to new highs in due course, with resistance then seen next at 4800 and with trend resistance from April now at 4830.”

“A close below the price gap from early last week at 4592/88 would add weight to the scenario for a lengthier consolidation and a fall back to the 63-day average at 4546.” 

“Only a weekly close below the 63-day average at 4546 would warn of a more damaging correction and ‘risk-off’ phase, with support seen next at 4448/38 and then more importantly at the 200-day average at 4330.”