S&P 500: Financials threats new lows - Credit Suisse

FXStreet reports that economists at Credit Suisse expect the financial sector to remain in its relentless underperformance trend while the energy sector is also awaited to continue its long-term downtrend. On the other hand, the consumer discretionary sector has surged higher and is looked for to outperform.

“The S&P Financials Sector has been capped at its 200-day average at 444 and we look for the risk to turn lower again with support seen next at 350, then 333, which we look to try and hold. 

“S&P Energy Sector recovery has been capped well ahead of key resistance at 389/95 and a fresh top is threatening. Below 259.50 would confirm to turn the core risk lower again.”

“Along with Tech the Consumer Discretionary sector has been one of the star performers from late March and with the sector in new highs and above long-term trend resistance we expect this trend to continue, with resistance seen next at 1124, then 1160.”