S&P 500 Index set to hold support at 4,500 on a closing basis – Credit Suisse

S&P 500 is correcting lower. Economists at Credit Suisse analyze the index outlook.

Move above 4,555/60 needed to ease thoughts of a correction lower

We see scope for a test of support from the rising 13-day exponential average, currently placed at 4,500, but we look for an attempt to hold here on a closing basis and for the risk to then turn higher again. A close below 4,500 though would suggest a more concerted correction lower is underway, for support next at 4,448/39, potentially back into the 4,400/4,385 zone.

Above 4,555/60 is now seen needed to ease thoughts of a correction lower for a move back to the 4,578 current cycle high. Above here can see a retest on the channel top at 4,613, with scope thereafter for the 4,637 high of March 2022.