S&P 500: Immediate upside bias – Credit Suisse

S&P 500 is expected to extend its recovery to 2874/77, the more likely 2903/07, with fresh sellers expected here, according to the Credit Suisse analyst team.

Key quotes

“Further strength to 2874/77 is looked for, more likely 2903/07, where we expect fresh sellers to show. Above 2907 though would suggest strength can extend to the top of the range at 2934/55.”

“Volume, which has been one of our core drivers to view the recovery as corrective, rose sharply on Friday. Whilst one session is not enough to make a trend, if this rising volume pattern does continue as the market rallies then this would throw a serious question mark as to whether the strength from March has indeed just been corrective.”

“Support moves to 2838 initially, with a break below 2814 still needed to reassert a bearish tone again with support then seen at 2771/67 ahead of 2746 and then price support at 2727/21.”