FXStreet reports that analysts at Credit Suisse note that S&P 500 has again as expected rejected key flagged resistance from the top of the price gap from early June and potential downtrend from March at 3180/90 as the fall in bond yields adds further weight to the view that markets are set for a fresh ‘risk-off’ phase.

“With bond yields breaking lower through key resistance levels it looks likely we set for a fresh ‘risk-off’ phase. Key support stays seen at the 13-day average and 38.2% retracement of the recent swing higher at 3124/13, also yesterday’s low, a close below which can reinforce this view with support seen next at 3092, then 3070/67. Below this latter area can see a retest of the 200-day average, currently at 3026.” 

“Resistance at 3180/90 is expected to continue to cap. Above though can quickly reassert an upward bias for a look at the 3223/33 June highs.” 

“The VIX continues to hold key support from its 200-day average and June low at 26.29/23.54 and we look for a fresh rise from here in line with our corrective view above, with resistance seen initially at 33.20.”