The S&P 500 has recently fallen to a key support level at the 200-Day Moving Average and the 38.2% retracement of its rally at 3940/27. The strategists at Credit Suisse are optimistic that this could be a temporary setback and remain biased to look for a floor here.
In order to add weight to the view that this is a temporary setback, the S&P 500 needs to break above 4081/91. If this happens, there is potential for a strength back to 4195/4203 and then a tougher resistance at the 61.8% retracement of the 2022 fall and summer 2022 high at 4312/4325. This could then define the top of what could be a broad and lengthy range.
On the other hand, if the S&P 500 breaks below 3886, this could suggest a more significant downturn within the broad range. The next support level would then be at 3764.
The strategists at Credit Suisse are optimistic that the S&P 500 will find a floor at the 200-Day Moving Average and the 38.2% retracement of its rally at 3940/27. This could provide temporary relief from the current downturn, and if the S&P 500 breaks above 4081/91, there is potential for a strength back to 4195/4203 and then a tougher resistance at the 61.8% retracement of the 2022 fall and summer 2022 high at 4312/4325. This could then define the top of what could be a broad and lengthy range.
However, if the S&P 500 falls below 3886, this could suggest a more significant downturn within the broad range. The next support level would then be at 3764.
It is important to note that the strategists at Credit Suisse remain biased to look for a floor at the 200-Day Moving Average and the 38.2% retracement of its rally at 3940/27. This could provide a temporary respite from the current downturn and could also provide a platform for a potential rebound.
There are a number of factors that could influence the future performance of the S&P 500. These include the overall health of the economy, the performance of the stock market, and geopolitical developments. It is also important to consider the impact of the coronavirus pandemic on the markets.
The strategists at Credit Suisse remain optimistic that the S&P 500 will find a floor at the 200-Day Moving Average and the 38.2% retracement of its rally at 3940/27. If this happens, there is potential for a strength back to 4195/4203 and then a tougher resistance at the 61.8% retracement of the 2022 fall and summer 2022 high at 4312/4325. This could then define the top of what could be a broad and lengthy range.
On the other hand, if the S&P 500 falls below 3886, this could suggest a more significant downturn within the broad range. The next support level would then be at 3764.
In conclusion, the strategists at Credit Suisse remain optimistic that the S&P 500 will find a floor at the 200-Day Moving Average and the 38.2% retracement of its rally at 3940/27. If this happens, there is potential for a strength back to 4195/4203 and then a tougher resistance at the 61.8% retracement of the 2022 fall and summer 2022 high at 4312/4325. However, if the S&P 500 falls below 3886, this could suggest a more significant downturn within the broad range. The next support level would then be at 3764. It is important to keep in mind the various factors that could influence the future performance of the S&P 500, such as the overall health of the economy, the performance of the stock market, and geopolitical developments.
