Resistance at 3838 to cap for a decline towards 3505 – Credit Suisse

The S&P 500 has seen a near-term post the FOMC as suspected bounce, but this has been capped at resistance from the beginning of the gap lower from Monday at 3838. Analysts at Credit Suisse stay negative for 3666/63 next and eventually the 50 % retracement of the 2020/2021 uptrend at 3505.

Initial resistance moves to 3815

“We look for 3838 to ideally continue to cap for a move below the current low at 3706 with support then seen next at 3666/63 ahead of potential trend channel support at 3637/33.”

“Big picture, we continue to look for a fall to our core objective at the 50% retracement at 3505, also the location of the 200-week average.”

“Resistance is seen moving to 3815 initially, with 3838 ideally capping. Above can see a deeper rebound toward the top of the price gap at 3900, but with fresh sellers expected here.”

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