Uptrend showing clear signs of tiring ahead of resistance at 4,637 – Credit Suisse

The uptrend in the S&P 500 showing clear signs of tiring beneath price resistance at 4,637, analysts at Credit Suisse report.

Close below here 4,448/39 to suggest a correction lower has begun

With both daily and weekly RSI momentum still not confirming the new highs, we stay reluctant to chase the market directly higher and instead, we still look for 4,637 to cap temporarily, prompting a pullback and some consolidation and ideally a correction lower.

Should strength instead extend directly above 4,637 though, then we would see no reason not to look for a test of the 4,819 record high.

Below support at 4,530 is now seen needed to ease the immediate upside bias for support next at 4,448/39. A close below here though is needed to suggest a correction lower has indeed begun, with support then seen next at the lower end of the uptrend channel, now seen higher at 4,370.