S&P 500 Index eyes a deeper recovery to 3925, potentially 4000 – Credit Suisse

S&P 500 Index has completed a base above 3807/10. Analysts at Credit Suisse look for a deeper recovery to the 63-Day Moving Average (DMA) at 3925, potentially 3999/4000. 

Deeper setback on a dip under 3792

“S&P 500 was unable to hold on to its early gains yesterday but the subsequent pullback remains above support around 3810. We look for this latter support to try and hold for strength back to 3886, then the late September high and 50% retracement of the fall from September at 3907/08. With the 63-DMA seen not far above at 3925, we would expect this latter resistance to cap at first. A closing break higher in due course though can see a further push to the 38.2% retracement of the entire 2022 fall at 3999.” 

“Below 3792 can see a deeper setback to price and 13-DMA support at 3742/35, but with fresh buyers expected here.”