The S&P 500 had another strong session on Thursday and closed above key resistance at 4477/81, which analysts at Credit Suisse look to be sustained into the weekly close, particularly given the fresh bullish cross in daily MACD momentum.

Support at 4424/18 needs to hold to keep the immediate risk higher

“S&P 500 closed above the key moving averages at 4477/81, which is a positive development, reinforced by the firm recent cross into positive territory for daily MACD momentum. We are now watching very closely whether the market sustains this move into the weekly close, which would be a significantly positive technical development.” 

“We believe the short-term risk stays skewed higher, with resistance seen next at 4522/30, ahead of the 61.8% retracement of the January/February fall at 4550. We see scope for a move above here to test the February highs at 4590/95, but would expect a fresh cap here.” 

“Near-term support moves to 4465/56. Below here and then the 13-day exponential moving average at 4424/18, on the back of a reversal below 4477/81 into the weekly close, would mark a more decisive rejection of the key medium and long-term averages. This would turn the short-term risk back lower for a move to 4347/52 next.”

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

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