The S&P 500 is on course to retest the 4223/4199 key support cluster. The risk for a break below here is seen rising sharply, which would open up further losses towards 3855/15, analysts at Credit Suisse report.

Weekly RSI holds a major top

“We maintain our negative outlook for a retest of a cluster of supports at 4223/4199. Although a fresh hold here should be allowed for, downside risks are seen increasing and with weekly RSI momentum maintaining a large top we are now biased to a break lower.”

“Below 4199 on a weekly closing basis would complete a large ‘head & shoulders’ top to warn of a further fall to the 38.2% retracement of the entire 2020/2021 bull trend at 3855/15.”

“A close above 4595 remains needed to ease the threat of a top.”