Dow Jones
Now that the S&P 500 index has formed new highs at 4468 and touched off the 4461 resistance formed by the 127.2% Fibonacci extension, the big question a lot of traders want to know is: how far can the index go?
Analysts at Credit Suisse are lending their voices to the discussion and have proposed that the S&P 500 index could feel some resistance at 4472/4475, extending the trendline resistance from April. This is the mark that needs to be breached for the index to keep inching higher.
This mark is already above the bank’s Q3 objective of 4436/4456. Therefore, the bank expects the index to pull back from 4475, with 4500 lining up ahead as a future resistance. The bank also sees support at 4451 (close to the 4453 former resistance-turned-support), with 4436 and 4425/4421 seen as the pivots that follow. Splitting of the latter ushers in 4402/4400, followed by the gap support at 4381/4364.
The trendline resistance identified by Credit Suisse is shown as the dotted blue line that connects the peaks from April to date, with the 4475 resistance line also marked as the point at which the horizontal price plane intersects this line. Above this level, the 4500 price mark has been called as the next barrier in line.
Downside targets at 4400, 4393 and 4368 depend on price breaking down 4422 on the daily chart, which is also close to the 4425/4421 price support called by Credit Suisse as the pivot holding off the bears.
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