S&P 500 Index to hold below 4155 and eventually form a top – Credit Suisse

S&P 500 remains capped below key resistance at 4120/4155. Economist at Credit Suisse maintain their base case of looking for a top below 4155.

Important top to form

“S&P 500 is still capped as looked for below the downtrend from the beginning of the year, now at 4120, as well as the 50% retracement of the 2022 fall at 4155. We continue to look for a top in this 4120/4155 zone.”

“Below support at 3918/07 is now needed to set a top to add weight to our bearish view to suggest the recovery is over and broader downtrend is resuming.”

“A close above 4155 may be the first real sign that we may have seen the worst of the sell-off for a shift in the major trend to sideways, with key resistance seen next at the 61.8% retracement of the 2022 fall and August high at 4312/25.”