The S&P 500 has managed to hold 200-Day Moving Average and 38.2% retracement support at 3940/27. But a break past 4081/99 is needed to see further gains, economists at Credit Suisse report.

Close below 3927 would warn of a significant turn lower

“S&P 500 has managed to hold key support at 3940/27. Above 4081/98 though is needed to ease the pressure off this support 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.”

“A close below 3927 would now warn of a significant turn lower in the broader range with next support then seen at 3764/60 ahead of the long-term 200-week average at 3726.”