S&P 500: Support at 3156/54 holds upside bias – Credit Suisse

S&P 500 can maintain an immediate upside bias while support at 3166/64 holds with key resistance still seen at 3233/38. Key today is how the tech sector performs, according to analysts at Credit Suisse.

Key quotes

“We remain of the view critical for US equity markets is whether the Nasdaq 100 completes or avoids an important bearish ‘reversal week’ . If a ‘reversal week’ for tech is established, we believe this would see the market as a whole see a more concerted phase of (still) corrective weakness.”

“Near-term support for the S&P 500 remains seen at the price gap from Wednesday morning at 3201/3198, below which can see weakness extend back to the 13-day average at 3166/64. This needs to hold to suggest the overall risk can stay higher in the range. A closing break though can reinforce the broader sideways range, but with removal of 3116/13 needed to mark a top to warn of a more concerted correction lower within this range.”

“Above 3233/38 remains needed to resolve the range higher to clear the way for a challenge on the bottom of the February ‘pandemic’ gap at 3260. Above here and we see resistance next at 3288.”