Although key support has held, analysts at Credit Suisse think it is too early to make the call for an important floor in the S&P 500. The index is set to retest the key cluster of supports at 4213/4164.

Close above 4525 needed to suggest the worst of the sell-off is over

“Whilst we would look for a fresh attempt to hold 4213/4164 the poor momentum picture warns the risk for a break is elevated.”

“Should we see a close below 4164 this would warn of further weakness to 4057 and then we think 3855/15. We would though look for an important floor here though if tested.”

“A close back above the 200-day average and 38.2% retracement of the January sell-off at 4430/50 is seen needed to stabilize the market, but with a close above 4525 needed to suggest the worst of the sell-off is over. Even then, we would expect tough resistance to be found at the 63-day average, currently at 4648 and we would look for this to then cap to define the top of a broad-ranging phase.”