S&P 500 is set to find a short-term floor at the key cluster of supports around 3984/26, with the infdex expected to trade in a broad range over the medium-term, analysts at Credit Suisse report.

Temporary setback

“We look for the 63 and 200-DMAs and the 38.2% retracement of the 2022/23 upmove at 3984/26 to hold, in line with our view that this a temporary setback, ahead of further strength in due course to test key resistance at the 61.8% retracement of the 2022 fall and summer 2022 high at 4312/4325. We look for this to then prove a tough barrier to define the top of what we believe could be a broad and lengthy range.”

“Below 3886 is needed to suggest we may have seen a ‘false’ break higher and more important downturn within the broad range, with the next support then seen at 3764.”