S&P 500 eventually defended the lows of June near 3630 which resulted in a phase of a rebound. Economists at Société Générale expect the index to inch toward the 200-Day Moving Average at 4070/4120.

Defending 3815 is crucial for continuation in ongoing rebound

“It is worth noting that monthly RSI has so far defended its lower end of the range since 2010.”

“Ongoing bounce could persist towards 200DMA of 4070/4120 and a weekly gap near 4218. It is worth noting that the index has consistently struggled to reclaim this Moving Average since April; these could be important resistance levels near term.” 

“Defending short-term ascending channel near 3815 would be crucial for continuation in ongoing rebound. Break can result in a revisit of graphical levels near 3700/3630.”