S&P 500 to maintain an immediate upside bias while support at 3248 holds– Credit Suisse

S&P 500 while above 3248 can keep the immediate risk higher with resistance still seen initially at 3288, and eventually at the top of the February gap at 3328/38, the Credit Suisse analyst team briefs. 

Key quotes

“The S&P 500 stays a little sluggish near-term but with the market holding high-level support at 3248 as well as its break above key resistance from the 3233 June high, albeit on low volume, we continue to give the upside the benefit of the doubt still.” 

“Resistance is seen next at 3279/81, 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 at 3248 ideally holds to keep the immediate risk higher. A break can see a fall back to 3233/31, potentially 3215, with more important support seen at the price/gap and 13-day average support at 3207/3198. Only a close below here would be seen raising the prospect of a more concerted correction lower.”