S&P 500 remains capped below key resistance at 4,120/4,155. Economist at Credit Suisse maintain their base case of looking for a top below 4,155.

Important top to form

“S&P 500 is still capped as looked for below the downtrend from the beginning of the year, now at 4,120, as well as the 50% retracement of the 2022 fall at 4,155. We continue to look for a top in this 4,120/4,155 zone.”

“Below support at 3,918/07 is now needed to set a top to add weight to our bearish view to suggest the recovery is over and broader downtrend is resuming.”

“A close above 4,155 may be the first real sign that we may have seen the worst of the sell-off for a shift in the major trend to sideways, with key resistance seen next at the 61.8% retracement of the 2022 fall and August high at 4,312/25.”