S&P 500 has fallen sharply for a conclusive break below the 3855/15 key support cluster. Analysts at Credit Suisse maintain their negative outlook for support next at the 50% retracement of the 2020/2021 bull trend and 200-week average at 3505/3500.

S&P 500 in a bear market

“We look for further weakness with support seen next at the March 2021 low at 3723, ahead of our next major objective at 3505/00 – the 50% retracement and 200-week average. Our bias would be to try and look for at least a temporary floor here. A direct break though can see support next at the Q1 2020 pre-pandemic high at 3394, then the 38.2% retracement of the entire uptrend from the 2009 GFC low at 3232.”

“Resistance is seen at 3838 initially, then 3900, with 4017/18 now ideally capping to keep the immediate risk lower.”