According to the Credit Suisse analyst team, the S&P 500 is expected to see a close below its 63-day average for a lengthier corrective phase and a fall back to 4596/83, with scope for the 4495 December low.

Lengthier corrective/consolidation phase to emerge

“A weekly close below 4658 should further reinforce our base case for a lengthier corrective phase with support seen next at 4615, then the recent low, gap support and now also trend support from December at 4594/82.” 

“A close below 4582 would now raise the prospect we are indeed seeing a top complete to further increase the downside risk with supports seen next at 4568 ahead of the December reaction lows at 4531 and 4495.” 

“Resistance is seen moving to 4685 initially, then the 13-day exponential average at 4602/07, with the immediate risk now seen staying lower whilst below here. Above 4758 remains needed to ease fears of a deeper setback.”