S&P 500 Index to see a test of the 3394 record high – Credit Suisse

The S&P 500 Index maintains its break above resistance from the top of the February “pandemic” price gap at 3328/38 and although the uptrend is seen a little sluggish, economists at Credit Suisse look for this to clear the way for a challenge on the 3394 record high.

Key quotes

“S&P 500 is grinding its way higher following its break above resistance from the top of the February price gap at 3328/38 and whilst we remain concerned the trend is getting overstretched this suggests we can see strength extend further yet with resistance above 3356 seen next at 3373 and then and critically the 3394 record high, where we would expect to see at least some form of rejection, even if this proves only to be a brief pullback.”

“Support moves to 3329 initially, with 3318/17 needing to hold to keep the immediate risk higher. A break can see a deeper setback to 3307, then what we would look to be better support from its 13-day average, recent lows and gap support at 3286/71.”