The S&P 500 Index has come under pressure over the past couple of sessions, however key support at 4455/50 is still holding for now. Only a break below here would turn the short-term risks back lower in the range, according to analysts at Credit Suisse.

S&P 500 set to test resistance at 4663/68 whilst above key support at 4455/50

“S&P 500 is holding around its key 63 and 200-day moving averages at 4490/50 and short-term MACD momentum stays outright positive, even if is starting to roll over. We, therefore, stay directly biased higher whilst above 4455/50 and look for a test of the 78.6% retracement of the 2022 fall and price resistance at 4663/68.” 

“Above 4663/68 would open the door to a move to 4707/12 next, then what we look to be tougher resistance, starting at 4744/49. We expect a cap around this zone, in line with our broader medium-term view that the market is set to stay trapped in a broader mean-reverting phase.”

“Key support is seen at the 63-day average, price lows and 38.2% retracement of the recovery from the March low, which all coincide at 4455/50. Only a break below here would turn the short-term risks back lower within the range, with next supports then seen at 4376, then 4252.”