The S&P 500 is expected to continue to hold the 61.8% retracement of the January/February rally at 4365 for now. However, analysts at Credit Suisse maintain their broader negative bias for a clear break in due course and a retest of the 4223/4199 key support cluster.

Above 4451/53 to see a deeper rebound to 4484/86

“We look for some fresh consolidation above the 61.8% retracement of the January/February rally at 4365 for now but we maintain our broader negative view following the prior rejection from our recovery target and key resistance at 4491/95.” 

“Post a pause, we look for a retest and then break below 4365 with support then seen next at 4292 and eventually the major support cluster at 4223/4199. Failure to hold here would mark a major top.”

“Resistance is seen at 4426 initially, then 4451/53, which we look to try and cap. Above can see a deeper rebound to the 13-day exponential average at 4484/86, but with this expected to now prove a tougher barrier.”

See: S&P 500 Index needs to recapture 4600 to extend up-move – SocGen