S&P 500 has recovered, but economists at Credit Suisse remain biased to fade strength.

Break above 4078/90 to reassert an upward bias 

“Whilst capped below the downtrend from the beginning of February and price/gap resistance at 4078/90, we continue to view the broader risk as marginally lower for a fall back to 3809, then support next at the 61.8% retracement at 3764/60 with the key 200-week average now at 3736. Our bias would then be to look for the market to stabilize around 3764/36.” 

“A weekly close below 3736 would be seen to re-expose the 2022 low and 50% retracement of the 2020/2022 bull trend at 3505/3492.”

“Above 4078/90 would suggest we have seen a ‘false’ break lower to reassert an upward bias for strength back to 4195, possibly even 4312/4325.”