S&P 500 remains above support from its recent price gap and near-term range lows at 4077/57. Thus, economists at Credit Suisse continue to look for a deeper recovery with resistance seen at the 38.2% retracement of the 2022 fall at 4195, then the 63-day average at 4263.

Near-term support moves to 4138/33

“We remain biased to a deeper corrective recovery/consolidation. Above the near-term range high at 4178 is needed to add weight to our view for a test of the 38.2% retracement of the entire 2022 fall at 4195. 

“Whilst we would expect a cap at 4195 at first, a break can see strength extend to the key 63-day average at 4263, where we would be alert to a fresh cap. At most, we can see the recovery extending towards the 200-day average and potential downtrend from the 2022 high at 4447/89, however, we have more confidence in a cap here if reached.” 

“Near-term support moves to 4138/33, then 4110. Below 4080/58 is needed though to see the risk turn lower again with support then seen next at 3985.”