S&P 500 has staged a sharp rebound. The index could extend its move higher on a break above the 3810/40 area, economists at Société Générale report.

Defense of 3585 essential to avert deeper fall

“Holding above the 3585 mark, a short-term bounce can’t be ruled out.”

“It would be interesting to see if the index can form a base and reclaim the recent high near 3810/3840. If this break materializes, an extended up-move could take shape towards 4000 and September high of 4120.”