The S&P 500 has gapped higher on increased volume. Analysts at Credit Suisse see scope for further strength in the broader consolidation range.

Resistance seen at 3902 initially, then 3946

“A positive end to last week has seen the S&P 500 gap higher on improved volume for a close back above the short-term 13-day exponential average. This should reinforce the sideways range of the past few weeks, with the immediate risk now for a deeper recovery within this range.” 

“Resistance is seen initially at the top of the downtrend channel from April at 3902, a close above which should clear the way for strength back to 3919 then the late June high at 3946. Above here can see the recovery extend to 3974 next with more important and tougher price, gap and 63-day average resistance seen at 4010/19, which we expect to remain a major barrier.” 

“Support is seen at 3833 initially, then the price gap from Friday morning at 3817/3790. Beneath here is needed to reassert a negative bias in the range again with support seen next at 3732/22.”