FXStreet reports that analysts at Credit Suisse expect the S&P 500 to remain in a potentially lengthy consolidation/corrective phase with key resistance seen at the near-term downtrend at 3896.

“S&P 500 strength yesterday was capped ahead of its near-term downtrend, today seen at 3896 and the subsequent retreat has seen the market move back below its 13-day exponential average, now at 3838. This choppy price action is seen adding weight to our view that the market has entered a lengthy consolidation/corrective phase following the move to our 3900/3930 core target in mid-February and for the time being we are reluctant to materially chase either strength or weakness.” 

“Below support at 3808/04 is needed to clear the way for a fall back to 3784, a break of which is needed for a retest of the 3723 recent low." 

“Immediate resistance is seen at 3847/52, above which can see strength back to 3881, then a retest of the downtrend at 3896, but with a fresh cap expected here.”