FXStreet reports that the Credit Suisse analyst team notes that the S&P 500 has broken above the 3432/36 key resistance and a break above resistance at 3444/46 today would confirm the market has entered a more accelerated trend state, in line with the improvement in momentum and despite the narrowing breadth.

“S&P 500 moved sharply higher again on Tuesday, breaking above the key Fibonacci projection level at 3432/36, but closing just below the potential trend channel resistance at 3444/46. Whilst our ‘ideal’ roadmap is that this zone will prompt a correction lower, the break above the first and more important of these two resistances, with momentum confirming the move, suggests we may be entering a more accelerated phase, with a break above 3444/46 today confirming.”

“Next resistance is seen at 3456, then 3466, with the top of our typical extreme zone (i.e. 15% above the 200-day average) at 3539 expected to prove a tougher barrier.” 

“Support stays at 3414/13 initially, with a break below the uptrend from late June at 3392 today and the 13-day exponential average at 3382/79 needed to remove the upside bias. Only below the 3355/54 recent low though would see a (small) price top established to confirm a more important near-term peak, with support then seen next at 3326.”