S&P 500 has failed to surpass the 4000 area. Economists at Credit Suissse expect the index to remain under bearish pressure.
Sustained move below 3698/3674 can reinvigorate the bear market
“S&P 500 has been capped as looked for at its 200DMA and downtrend from the beginning of 2022, currently seen at 3995 and 4075 respectively, with further key resistance seen at the 4101 December ‘reversal week’ high. Whilst we suspect we can see some further range-trading beneath here the overall trend will still stay seen bearish whilst below 4101.”
“A close above 4101 would be seen to turn the trend neutral and open the door to strength back to 4300/4325.”
“Key price and 200-week average support is seen at 3698/3674, a sustained move below which can reinvigorate the bear market to clear the way for a fall back to 3505/3492 and eventually we think 3234/3195 later in the year.”