The S&P 500 rally is showing tentative signs of stalling. Analysts at Credit Suisse remain of the view strength from October has been a bear market rally and look for a break below 3907/06 to establish a “double top.”

Overshoot to 4127/55 not ruled out

“Whilst we remain on alert for signs of a top, we would still not rule out an overshoot to the downtrend from the beginning of the year and 50% retracement of the 2022 fall at 4127/55, but we continue to look for a top in this 4054/4155 zone. A close above 4155 though may be the first real sign that we may have seen the worst of the sell-off, with resistance seen next at 4312/25.”

“Support stays seen at 3907 initially, below which can now set a small top to ease the immediate upside bias, with support seen next at the 63-day average at 3630. Below 3698 remains needed to suggest the recovery is over and broader downtrend is resuming.”