S&P 500 Index: Break below 4000/3930 to affirm an extended down

S&P 500 Index: Break below 4000/3930 to affirm an extended down move – SocGen

The S&P 500 finished lower as the index posted a -0.88% loss. It was the first back-to-back -1.0% days for the S&P 500 since mid-December. The index could suffer a deeper fall on failure to hold above 4000/3930, economists at Société Générale report.

A pullback is underway
“S&P 500 broke out above a multi-month trend line resulting in extension of its rebound. It recently approached intermittent resistance of 4218 representing previous bearish gap.”

“Currently, a pullback is underway. However, the trend line and the 200-DMA near 4000/3930 should be a short-term support zone. A break below this would be essential to affirm an extended down move.”