The rise in yields reinforces the existing bearish “reversal week” in the S&P 500. Analysts at Credit Suisse continue to look for further weakness to the 4495 December low and now more realistically the 200-day moving average (DMA), currently placed at 4421.

Break above 4748/58 is needed to ease the threat of further corrective weakness

“With US bond and real yields reinforcing their large yield bases, we continue to look for a deeper corrective phase.”

“We stay biased lower for a test of important support from the December low at 4495 and now we think more likely the 200-DMA at 4421.”

“Whilst we would look for the 200-DMA to ideally hold, a weekly close below would suggest we have seen a more important peak with supports seen next at 4279, then the 38.2% retracement of the rally from last October at 4213.”

“Above 4748/58 is needed to ease the threat of further corrective weakness for strength back to the 4819 high.”

See – S&P 500 Index set to hit the 5,000 level in June – UBS