S&P 500: Key 200-day average resistance at 3000 to top – Credit Suisse

S&P 500 is expected to open strongly for a likely break above the 2980 high of last week for a test of its major resistance from its 200-day average at 3000. Despite the strong tone seen today, analysts at Credit Suisse, continue to look for signs of a top here.

Don't miss: S&P 500 ended on a positive note in 17 of the past 23 presidential election years

Key quotes

“A broader ‘risk-on’ tone to markets is expected to see the S&P 500 open strongly for a likely break above the 2980 high of last week for a move to 2986 initially, then more likely what remains seen as its major resistance from its 200-day average and Fibonacci projection resistance at 2994/3000.” 

“We remain of the view above 3024 is needed to suggest our toping scenario is wrong and further gains can be seen with resistance seen at 3136/37 next.” 

“Support is seen at 2944 initially, then 2934, with the immediate risk seen higher whilst above the top of the price gap from last week and 13-day average at 2914/09. A close below here is needed to rekindle a bearish tone.”