S&P 500 Index: Ongoing bounce could persist towards 200DMA at 4070/4120 – SocGen

S&P 500 eventually defended the lows of June near 3,630 which resulted in a phase of a rebound. Economists at Société Générale expect the index to inch toward the 200-day Simple Moving Average at 4,070/4,120.

Defending 3,815 is crucial for continuation in ongoing rebound

“It is worth noting that monthly Relative Strength Index (RSI) has so far defended its lower end of the range since 2010.”

“Ongoing bounce could persist towards 200 DMA of 4,070/4,120 and a weekly gap near 4,218. It is worth noting that the index has consistently struggled to reclaim this Moving Average since April; these could be important resistance levels near term.” 

“Defending short-term ascending channel near 3,815 would be crucial for continuation in ongoing rebound. Break can result in a revisit of graphical levels near 3,700/3,630.”