The S&P 500 rally has stalled near term, but analysts at Credit Suisse still see scope for an eventual test of 4312/4325.

Initial support seen at 4016

“The S&P 500 rally looks to have stalled near term, and we see scope for some near-term consolidation and a pullback. This stays viewed as a temporary setback ahead of further strength in due course to test key resistance at the 61.8% retracement of the 2022 fall and summer 2022 high at 4312/4325. We look for this to then prove a tough barrier to define the top of what we believe could be a broad and lengthy range.”

“Support is seen at 4016 initially, then the 63 and 200-day averages at 3975/43, which we look to ideally hold. Below 3886 though is needed to suggest we may have seen a ‘false’ break higher and more important peak.”