S&P 500 moved higher on Monday after holding above key moving average supports starting at 4514/4488. Analysts at Credit Suisse stay biased tactically higher, with next resistance at 4637. 

Key support at 4462/55 needs to hold to maintain the direct upward pressure

“We stay directly biased higher for now for a test of the 78.6% retracement of the 2022 fall and price resistance at 4663/68. Above here would open the door to a move to 4707/12 next, then what we look to be tougher resistance, starting at 4744/49 and stretching up to the 4819 record high. We expect a cap in this zone, in line with our broader medium-term view that the market is set to stay trapped in a broader mean-reverting phase.” 

“First support remains at 4514/08, which includes the 23.6% retracement of the recent recovery and 13-day exponential moving average, which floored the market on Friday. Below here the next level is seen at the 200-day average at 4488, then the 63-day average and price lows at 4462/55.”

“Only a break below 4462/55 would turn the short-term risks back lower within the range.”