S&P 500 Index: Holding above 3850/3815 needed to extend the bounce – SocGen

S&P 500 rebound has once again faltered near the September peak of 4120. The index must hold above the 3850/15 zone to sustain the bounce, economists at Société Générale report.

Receding upward momentum and possibility of a pause

“Daily MACD has dipped below its trigger line denoting receding upward momentum and possibility of a pause.”

“The 50-Day Moving Average near 3850/3815 should be an important support zone near term. Holding above this, the bounce could gradually persist towards the previous gap near 4218.”