S&P 500 Index set for a fresh pullback at the 3980/82 zone – Credit Suisse

S&P 500 is expected to see an initial pullback from trend channel/Fibonacci resistance at 3980/82, but with weakness seen as corrective ahead of an eventual move to the 4070/75 area, the Credit Suisse analyst team reports.

See:

• S&P 500 Index still have much further to rise for three reasons – Natixis

• S&P 500 Index: Rally to continue as the US economic recovery gains momentum – UBS

• S&P 500 Index to climb towards 4100 by end-2021 – Deutsche Bank

Key quotes

“The S&P 500 has extended its rally to the top of the potential trend channel from late February and Fibonacci projection resistance at 3980/82 and although our broader outlook stays bullish, we look for a fresh pullback at first. Beyond in due course though should see resistance at the psychological 4000 mark, then 4025.”

“Big picture, we continue to look for a move in due course to our next flagged objective at 4070/75, from which we look for a fresh phase of consolidation.” 

“Near-term support is now seen at 3953/48, below which can see a deeper setback to the recent lows at 2925/15, which need to hold to prevent a near-term (minor) top.” 

“The VIX is retesting key support at 21.46/19.51, a weekly close below which should confirm a move to a lower volatility regime following the elevated levels of the past seven months, with support seen next and initially at 18.00.”