S&P 500 points at the February pandemic gap at 3260 after breaking the 3233 June high – Credit Suisse

S&P 500 has finally seen a clear break above the June high at 3233 for a resumption of the uptrend with resistance seen next at 3260 above which can see the top of the gap at 3328/38, analysts at Credit Suisse apprise.

See: 

• S&P 500: June 2021 target is 3,300 – UBS
• S&P 500: Financial sector to be a particularly good opportunity – Morgan Stanley

Key quotes

“The S&P 500 has finally seen a clear break and close above key resistance from the 3233 June high, albeit on low volume and strength has already extended to next flagged resistance from the bottom of the February ‘pandemic’ gap at 3260. Although this should be respected we look for a clear break in due course with resistance seen next at 3288, ahead of 3318 and then the top of the February gap at 3328/38, which we look to prove a tougher barrier. Should strength directly extend, we think this can clear the way for a move back to the 3394 high.” 

“Support is seen at 3233/31 initially, with 3215 now ideally holding to keep the immediate risk higher. Below can see a fall back to price/gap support at 3200/3198, with the key 13-day average now at 3185.”