U.S. stocks are facing a potentially “extensive setback,” according to the head of technical analysis research at Credit Suisse Group AG.
If the Standard & Poor’s 500 Index futures contract expiring in June falls through a so-called resistance level at 1,183, it may retreat as much as 1.9 percent to a support level of 1,161, according to a report today by Credit Suisse’s David Sneddon. The market would gain support at the 38.2 percent Fibonacci retracement level around 1,145, he wrote in the report. The contract would need to rise to above 1,215 to revive an upward trend, he said.
“The S&P 500 starts the week threatening a more extensive setback,” London-based Sneddon wrote.
The S&P 500 posted its biggest one day decline in more than two months on April 16, to close at 1,192.13. Goldman Sachs Group Inc. sank 13 percent that day, its biggest plunge in more than a year, after the SEC sued the bank and one of its vice presidents. The S&P 500 lost 0.1 percent to 1,190.83 as of 9:35 a.m. in New York today.
To contact the reporter on this story: Adam Haigh in London at firstname.lastname@example.org.