S&P 500: Lengthy corrective phase underway with support seen at 3076 – Credit Suisse

FXStreet notes that S&P 500 strength has been rejected and with an ‘island top’ in place beside daily MACD momentum having turned lower strategists at Credit Suisse continue to look for a lengthier consolidation/corrective phase to emerge with support seen at 3076/66.

“With an ‘island top’ in place and with daily MACD momentum having turned lower this is seen adding weight to our core view that the market is now in a consolidation/corrective phase, which we look to extend further.”

“Immediate support is seen at 3083 then the price gap from the beginning of last week at 3076/66. Beneath here remains needed to ease the immediate upside bias to reinforce the broader ranging scenario, with support then seen next at 3044 ahead of the 200-day average at 3019/18. A weekly close below here remains needed to suggest a more concerted correction lower can emerge, with the 38.2% retracement of the entire rally from March at 2835.” 

“Resistance is seen at 3116 initially, then 3140, with a break above 3153/56 needed to clear the way for strength to extend back to the top of the price gap from last week at 3181/90, which we continue to look to cap. Above 3190 though can see the risk stay higher for a test of the potential downtrend from the February peak, today seen at 3213.”