S&P 500 strength stays seen as temporary. Analysts at Credit Suisse look for an eventual test of the 200-week average at 3743.

Break above 4078 to reassert an upward bias

“The S&P 500 rebound has been capped at its downtrend from February, and the market could be forming a potential ‘head and shoulders’ top. Strength therefore stays seen as temporary, and we look for an eventual test of the 200-week average at 3743. Below here at any stage would open up a move back to the 3505/3492 lows.”

“Above 4078 would be seen to reassert an upward bias for strength back to 4195, possibly even 4312/4325.”