The S&P 500 Index surged higher on Wednesday following the FOMC. A break above 4714 is needed to end thoughts of further short-term consolidation to open up a move to 4744/50 next, analysts at Credit Suisse report.

A break above 4750 would open up 4838

“The S&P 500 is now testing near-term resistance at the highs from late last week/Monday at 4713/14. Above would end thoughts of a consolidation period for a retest of 4744/50, reinforced by the quick turn back higher in daily MACD momentum, which now seems to be in more sustainably bullish territory.”

“Whilst the key 4744/50 resistance area should clearly be respected again, we look for an eventual sustained break higher in due course to clear the way for a move to 4780/82, ahead of the psychological 4800 barrier.”

“Support stays at 4607, then the price gap from last week, which stretches down to 4592/88. This should continue to provide a good floor, however a break would suggest a slightly deeper turn lower towards 4556/54, which is the 63-day average and 2020/21 uptrend. We would have a high level of confidence in finding a floor here if reached.”

This article was originally published by Fxstreet.com.Read the original article here.

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