A rollercoaster session post the US Consumer Price Index (CPI) data saw S&P 500 completing a large bullish “reversal day.” Analysts at Credit Suisse expect the index to enjoy a deeper recovery phase.

Holding above the key 200-week average to allow a deeper recovery

“We have probably seen a low for now and we can look for a consolidation phase and more likely a deeper recovery.”

“Above 3688 can see the immediate risk stay higher for 3707 next, then the top of the price gap from last Friday at 3745. A close above here is needed to reinforce the likelihood a more important low is indeed in place for a test of the current October high and 38.2% retracement of the August/October fall at 3807/10. Beyond here is needed to mark a near-term base.”

“Support from the 200-week average at 3600 needs to hold on a closing basis to avoid an immediate retest of 3505/3492.”