FXStreet notes that the S&P 500 has seen an aggressive rejection of resistance at 3930/34 on increased volume as rising bond yields and then the poor Treasury auction last night took their toll. This raises the prospect of a lengthier consolidation and a test of more important supports at 3792/74 – the early February price gap and rising 63-day average, in the view of the Credit Suisse analyst team.

“We look for a break below 3806 for a test of a cluster of what we see as more important supports at 3792/74 – the early February price gap and rising 63-day average. Our bias remains for this to remain a floor to define the lower end of a sideways range, ahead of the broader uptrend eventually resuming.” 

“A close below 3774 would be seen as technically important, raising the prospect of a more protracted and deeper corrective phase with support seen next at 3728/26 and then more importantly at the 3694 late January low.”