S&P 500: Looking for a sustainable floor – Credit Suisse

The S&P 500 has rebounded over the past few sessions and a key resistance at 2563/77 is being broken . Economists at Credit Suisse analyze the technical picture of the S&P 500 chart.

Key quotes

“Key resistances during this bounce are seen at the important 200-week average and 38.2% retracement of the 2020 fall at 2643/51, with a key high just above here at 2711.”

“A break above here would remove our medium term (1-2 month) bearish outlook, which we have maintained since 3215/12 and likely suggest a sustainable floor for the market is already in place.”

“Although we may see a slightly deeper correction higher, the technical outlook over the next 1-2 months has clearly deteriorated following the break below our lower extreme zone and the 200-week average.”

“The next supports are 2192, then at 2030/2000, the 50% retracement of the entire 2008/2020 rise.”