S&P 500: Potential head and shoulders top suggests a deeper setback – Credit Suisse
published 28.07.2020 13:22
The S 500 Index pushed slightly higher on Monday but maintains a bearish “reversal day” and the Credit Suisse analyst team also now sees the potential for a ‘head and shoulders’ top if the S 500 Energy Industry Group break below 260.84/259.49 which would imply a deeper correction.
Key quotes “Key near-term support is seen at its 13-day average at 3215, with a break below 3200/3198 then needed to confirm the aforementioned top.
This would then open the door to a swing lower within the broader sideways range with support seen next at 3173, ahead of 3154 and then more importantly 3116.”
“S 500 Energy Industry Group is likely to be a good barometer for the broader market over the next few sessions, as a break below 260.84/259.49 would complete a large ‘head and shoulders’ top to suggest a deeper setback, with next supports then seen at 235.089 initially, then 208.23.
In contrast, a break above 292.19/32 would actually set a small base to turn the risks higher within the range, with next resistance then seen at 314.01 initially.”