S&P 500 has retested and rejected the 4238 record high for the completion of a small bearish “reversal day.” Nevertheless, with daily MACD momentum having turned higher, the bias of the Credit Suisse analyst team is still to give the upside the immediate benefit of the doubt whilst above 4171/69.

Support at 4170/69 set to hold despite the small bearish “reversal day” 

“S&P 500 strength has extended to test and reject the 4238 record high for the completion of a small bearish ‘reversal day’ and although daily MACD momentum has turned higher this suggests it still may be too soon to look for a direct resumption of the uptrend.

“Support remains 4198 initially, then 4183, with the recent price gap at 4176/69 to keep the immediate risk higher for now. Above 4210 is needed to clear the way for a back to 4234/38. Beyond here though is needed to neutralize the bearish ‘reversal day’ for 4260 next.” 

“Big picture, we continue to look for a move to 4350.” 

“Below 4169 can instead reinforce thoughts of further range trading for a fall back to 4156/52, potentially the uptrend from late October at 4133, but with fresh buyers expected here for now.”

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