S&P 500 has developed a steady rebound after failing to give a decisive break below graphical levels of 3,700/3,630. Economists at Société Générale expect the index to extend its bounce.

Defending 3,815 is essential for persistence in bounce

“Cross above last month high has resulted in a series of higher peaks and troughs highlighting short-term upside.”

“The index is expected to inch higher towards projections of 4,120/4,150 and perhaps even towards previous bearish gap near 4,218.” 

“August high of 4320 could be an important resistance.”

“Defending 3,815, the 38.2% retracement of recent move is essential for persistence in bounce.”