The S&P 500 Index has entered a more accelerated trend state with a break with ease above resistances at 3432/46, with daily RSI momentum now above its June peak, reinforcing the move higher. The next major resistance is seen at the top of our typical extreme zone at 3541, as the Credit Suisse analyst team notes.
“S&P 500 moved sharply higher again on Wednesday, breaking clearly above our next key objective at the Fibonacci projection level at 3432/36 and the top of the potential trend channel resistance at 3444/46. This suggests the market has entered a more accelerated phase, with daily RSI momentum now above its June peak, reinforcing the break higher.”
“Next resistance is seen at the top of the weekly BollingerBand at 3500/03, then the top of our typical extreme zone (i.e. 15% above the 200-day average) at 3540/41, which is expected to prove a tougher barrier.”
“Support moves higher to 3466 initially, below which would complete a very small intraday top, however only a break below the uptrend from late and the 13-day exponential average at 3402/3394 would remove the upside bias.”