The S&P 500 Index managed to close last week above its key 63 and 200-day moving averages (DMA) seen at 4482 and 4477 respectively. Next resistance is seen at the 61.8% retracement of the 2022 fall at 4550, then the February highs at 4590/95, strategists at Credit Suisse report.

Although volume remains worrying light, the immediate risk is still seen higher

“Whilst volume remains light to suggest this is still a rally within a broader range, we continue to see scope for a move above here to test the February highs at 4590/95, but we would expect a fresh cap here. Should strength directly extend though, we would look for a move to next resistance at the 78.6% retracement and price resistance at 4663/68.”

“Near-term support moves to 4501, then 4485/77, with the immediate risk seen staying higher whilst above the 4456 recent reaction low. Below here can mark a minor top to ease the immediate upside bias for a fall back to the 13-DMA and low of last week at 4424/21.”