S&P 500 Index: At risk of further short-term weakness to long-term supports at 3522/05 – Credit Suisse

S&P 500 remains under pressure. The near-term risk over the next 2-4 weeks stays seen lower still, but with major support still expected at 3522/05, economists at Credit Suisse report.

Break above resistance at 3946 needed stage a deeper recovery

“A break below 3637 would likely trigger further weakness over the next 2-4 weeks to next support at 3522/05, which is the 50% retracement and 200-week average. Our bias would be to try and look for at least a floor here if reached, particularly given the tiring medium-term momentum.”

“Below 3505 though and we would see support next at the 3394 high of Q1 2020.”

“Above resistance at 3946 is needed to see the downtrend from April break to suggest the market can stage a deeper recovery with resistance seen next at the 63-day average, currently seen at 4028.”