S&P 500 Index: Break below 3800/3760 to trigger a decline toward last October low of 3490 – SocGen

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S&P 500 broke out above the highs of last September/December, however, the move petered out after facing interim resistance near 4195. Crucial support is seen at 3800/3760, analysts at Société Générale report.

S&P 500 must surpass 4000 to affirm an extended up move

“Low of December near 3800/3760 which is also the 61.8% retracement from October is a crucial support zone.” 

“A bounce is expected but the index must re-establish itself beyond the 50-DMA (now at 4000) to affirm an extended up move.” 

“Should the index establish itself below 3800/3760, a deeper down move is not ruled out. Next potential objectives could be at 3630 and last October’s low of 3490.”