S&P 500 carved out a higher trough at 3765 as compared to the one in October near 3490. The index could test 4218/4310 on a move above 4120, economists at Société Générale report.

Defending the 50DMA at 3930 would be crucial for persistencein up move

“It is worth noting that the index is about to witness a golden crossover (i.e. the 50DMA crossing beyond the 200DMA); this highlights potential upside.”

“S&P 500 is now close to the upper limit of the range since September at 4120. If this hurdle is overcome, ongoing bounce could extend towards previous bearish gap at 4218 and projections of 4310/4370.”

“Defending the 50DMA at 3930 would be crucial for persistence in up move.”