S&P 500 Index: Race higher to take a break at the psychological 4500 level – Credit Suisse

S&P 500 has surged to new record highs. The spotlight turns to trend resistance from April and the psychological 4498/4500 barrier, which strategists at Credit Suisse look to cap at first.

See: S&P 500 Index to reach the 5000 level by year-end – UBS

Psychological 4500 barrier to cap at first

“The spotlight turns on trend resistance from April, today seen at 4493, just shy of the psychological 4500 level. Despite the strength yesterday our bias remains to look for a cap in this 4495/4500 zone at first for a fresh pullback.”

“A direct break of 4495/4500 can see resistance next at 4517/25. We do not see the market at the upper end of its ‘typical’ extreme though until it reaches 15% above its 200-day average, which is still some considerable distance away at 4624.”

“Support is seen at 4465 initially, then the price gap from yesterday morning at 4450/42. A close below here is needed to ease the immediate upside bias for a pullback towards 4419, potentially 4407/06.”