S&P 500: 63-day average at 3292 holds but risks for a deeper setback linger – Credit Suisse
|S&P 500 has fallen as expected to test its key medium-term 63-day average, now at 3292. Although this is holding at present, the risk is seen for a close below 3292 with next supports seen at 3285/80 and then 3260/59, per Credit Suisse.
More: S&P 500 Index needs further fiscal support to avoid a correction
Key quotes
“The S&P 500 remains under pressure after completing a small bearish ‘reversal day’ at its 13-day exponential average and the decline has extended as expected for a test of its 63-day average at 3292.
“Although the 63-day average at 3292 is holding for now we are seeing key supports break for a range of other markets and sectors (notable Tech) and a break and close below 3292 is seen likely. If confirmed this should then see support next at 3285/80 and stretching down to the 23.6% retracement of the rally from March at 3260/59, which we look to try and hold. Should weakness instead directly extend, this would warn of a more protracted and deeper correction lower with support seen next at 3204/00.”
“Resistance moves to 3329 initially, then 3345, with 3375/85 now ideally capping further strength.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.