FXStreet reports that economists at Société Générale note that S&P 500 faced resistance at the earlier highlighted level of 4540 representing a trend line connecting peaks of September 2020, April/May 2021. The Index may suffer a decline to the 4300-level, they suggest.

“The S&P 500 Index has staged a pullback and is now drifting towards 50-DMA at 4440/4420. It is worth noting that this MA has provided support to the dips since March.”

“Failure to hold above 4440/4420 can result in a deeper down move. In such a scenario, S&P 500 could head lower towards the recent trough at 4365 and 4300.”