In the view of strategists at Credit Suisse, the S&P 500 is expected to see a deeper recovery to 3974, potentially the top of the early June price gap and 38.2% retracement of the fall from March at 4017/19.

Initial support seen at 3872

“The recovery is set to extend further yet with resistance seen next at 3943, then the price gap from earlier in June, starting at 3974 and stretching up to 4017/19, also the 38.2% retracement of the March/June fall. With the top of the trend channel from April seen not far above at 4039, we would look for a cap here for an eventual resumption of the broader downtrend.” 

“Support is seen at 3872 initially, then 3848/38, with the price gap from Friday ideally holding to keep the immediate risk higher, seen starting at 3822 and stretching down to 3796.”