S&P 500 Index to lose the 3200 level – Credit Suisse

S&P 500 ideally holds below resistance at 3319/29 to keep its immediate risk lower for a deeper corrective setback with support seen at 3204/00 and potentially the 200-day average at 3105, analysts at Credit Suisse inform.

More:

• S&P 500 Index: Rotation needs macro support – Charles Schwab

• Equity Markets to extend the correction another 10% – Morgan Stanley

Key quotes

“The S&P 500 has rebounded although on slightly decreased volume but still remains capped ahead of its 13-day average, currently seen at 3362 as well as the top of its short-term down channel, seen lower today at 3347 and our bias remains to view this as a temporary bounce ahead of a deeper correction lower emerging.” 

“Support is seen at 3303/01 initially, with a break below 3271 now needed to clear the way for a move back to 3229 and then a cluster of price supports at 3204/3198, which we look to hold at first. A direct break though can expose the 200-day average at 3105.”

“Above 3319/29 would suggest a deeper recovery can be seen back to 3345/47, potentially the 13-day average and 38.2% retracement of the selloff at 3362/70, but with this expected to remain tough resistance.”