S&P 500 Index: Top of the trend channel from March at 4,599 to cap for a correction lower – Credit Suisse

S&P 500 has completed a small “doji” reversal at the top of its uptrend channel from March. Analysts at Credit Suisse look for a correction lower.

Break above 4,578 can see a test of 4,593/4,600

S&P 500 has cleared resistance at 4,513/4,535 or a move to test the top of the uptrend channel from March, today seen a tough higher at 4,599. The subsequent rejection from here though has left a small ‘doji’ candle reversal pattern, and we look for a cap here for now and for a retracement lower to emerge.

Support is seen initially at 4,555/54 initially, beneath which can see a slide back price support at 4,515. A break below here can see a test of the 13-day exponential average, currently placed at 4,479, but with a close below here needed to suggest a more concerted correction lower is underway, for support next at 4,448/39.

Above 4,578 can see a test of 4,593/4,600. Above here though is needed to suggest we can see a further acceleration higher for resistance next at the 4,637 high of March 2022.