S&P 500 Index Analysis Wednesday, May 5
The S&P 500 is hovering below the 4,200 mark, and analysts at Credit Suisse believe that a relatively long recession awaits the index. Also, the most important level of support is in the range of 4118 to 4112 units.
Due to the formation of several downtrend patterns as well as the downtrend of the MACD indicator, we will probably face a downtrend and volatility.
On the other hand, the resistance range of 4188 to 4193 units has prevented the growth of this index. The first support level is in the range of 4157 to 4155 units and if the index penetrates below this level, the next target will be the support range of 4118 to 4112 units. The last important level of support is in the range of 4086 to 4079 units. This level is adjacent to the 38.2% Fibonacci retracement level of the March uptrend.
On the other hand, if the resistance level above 4193 units is stabilized, we will see the growth of the S&P 500 index up to the range of 4209 to 4212 units. If the index can reach above 4219 units, we can expect an upward trend towards the targets of 4225, 4229, 4259 and 4260 units.