The S&P 500 has seen a further sharp fall and gap lower following the CPI release on Friday. Economists at Credit Suisse look for a clear and sustained break below support at 3815 for a fall to the 50% retracement of the 2020/2021 uptrend at 3505.

Resistance moves to 3943 initially

“We look for a conclusive and sustained move below 3815. This should then see the risk stay directly bearish with support seen next at the March 2021 lows at 3730/23 and eventually our core objective at the 50% retracement at 3505, also the location of the 200-week average.”

“Resistance is seen moving to 3943 initially, then the price gap from Friday, starting at 3974 and stretching up to 4017/18, which we look to ideally cap further strength.”