S&P 500: Support at 3200/3194 holds an upside bias with eventual resistance seen at 3338 – Credit Suisse

S&P 500 above 3200/3194 can keep the immediate risk higher for a clear break above the beginning of the large February “pandemic” gap at 3260, with the top of the gap at 3328/38, analysts at Credit Suisse report.

Key quotes

“The S&P 500 maintains its break above key resistance from the 3233 June high, albeit on low volume, but with the market for now unable to sustain its break above next flagged resistance from the bottom of the February ‘pandemic’ gap at 3260.”

“Our bias remains to give the upside the benefit of the doubt still with resistance above 3277 seen next at 3288, ahead of 3318 and then the top of the February gap at 3328/38, which we look to prove a tougher barrier. Should strength directly extend, we think this can clear the way for a move back to the 3394 high.”

“Support stays seen at 3233/31 initially, below which can see a fall back to 3215, with more important support seen at the price/gap and 13-day average support at 3200/3194. Only a close below here would be seen raising the prospect of a more concerted correction lower.”