S&P 500 has confirmed a small “head & shoulders” top below 3885 following the move to 3900 and the Credit Suisse analyst team continues to look for a correction lower to 3819/17 and potentially to 3792/74.
“We maintain our view of looking for a correction lower with support seen at 3852 initially, the 38.2% retracement of the rally from late January. Whilst we would look for this to hold at first, below in due course can see support next at 3830 and then the ‘measured top objective’ at 3819/17.”
“We see scope for an overshoot into the 3792/74 early February price gap but with the rising 63-day average not far below here at 3761, we look for a floor here for a resumption of the core uptrend.”
“Resistance moves to 3885 initially, with the immediate risk seen lower whilst below 3903/07. Above 3934 though remains needed to neutralize the top for a move back to 3950/51.”