S&P 500 Index needs to recapture 4600 to extend up-move – SocGen

S&P 500 has staged the expected pullback from the interim hurdle of 4600, the lower limit of previous channel. The index needs to recover this level to see additional gains, economists at Société Générale report.

Critical support aligns at 4300/4280

“S&P 500 is now testing support of 4360, the 61.8% retracement of the rebound. An initial bounce is not ruled out towards 4505 with next resistance at 4600. The index has to establish itself above this to affirm an extended up-move.” 

“Last October lows of 4300/4280 will be a crucial support near-term.”