S&P 500 Index maintains a bullish bias while above 3729/23 with resistance seen at 3765/85 – Credit Suisse

The S&P 500 Index can see the immediate risk stay higher while above the support at 3729/23 with next resistance seen at 3765/85 and eventually at 3900, economists at Credit Suisse inform.

Key quotes

“S&P 500 closed 2020 at its highs following its prior successful defence of the 3633 low from earlier in December with strength having extended to the cusp of a cluster of Fibonacci projection resistances in the 3765/85 zone. Whilst we look for this to cap at first for a fresh pullback, the core trend stays seen higher and we look for a break in due course with resistance then seen next at 3800 ahead of 3830/32 and eventually our main and core objective from the ‘measured triangle objective’ at 3900.” 

“Support moves to 3745 initially, with the immediate risk seen staying higher whilst above 3729/23. Below can see a pullback to 3711, potentially 3676. We maintain a tactical bullish bias though whilst above 3636/33.”