The S&P 500 has entered a short-term breather after rising sharply again last week. But as the the 4750 level is now within reach, analysts at Credit Suisse believe that an overshoot to 4875 is increasingly likely.

Support remains seen at 4663/51 initially 

“S&P 500 remains only slightly below our 4741/50 core Q4 objective, as well as confirmed trend resistance from April 2021. We expect this pause to persist over the next couple of sessions given the importance of this resistance, however post this phase, we believe that the top of our typical extreme zone, which is now seen at 4875, is increasingly likely to be achieved before year-end, due to the strong momentum observed within US equities.”

“Both short-term RSI and MACD momentum are at very strong levels, whilst medium term momentum is accelerating, which reinforces the case for a further ‘melt-up’ into year-end.”

“Support remains seen at 4663/51 initially, before 4627/20 and then 4589/82, which ideally holds to keep the immediate upside bias. A break can see a deeper corrective pullback, however this is certainly not our base case.”