S&P 500 has fallen to key 200-Day Moving Average support and the 38.2% retracement of its rally at 3940/27. Strategists at Credit Suisse remain biased to look for a floor here.

Break below 3886 to suggest a more important downturn

“We continue to look for the 200DMA and the 38.2% retracement of the 2022/23 upmove at 3984/27 to hold in line with our view that this a temporary setback.”

“Above 4081/91 is needed to add weight to our view for strength back to 4195/4203, then what we look to be tougher 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.”

“Below 3886 is needed to suggest we may have seen a ‘false’ break higher and more important downturn within the broad range, with the next support then seen at 3764.”