S&P 500 Index to see a meaningful rise on a break above 3810/40 – SocGen

US stocks stage a remarkable turnaround. The S&P 500 Index could enjoy further gains on a move above the 3810/40 region, analysts at Société Générale report.

Downward momentum has failed to regain

“S&P 500 has staged a sharp rebound after achieving 3490 completing the 50% retracement of the 2020-2022 uptrend. It is worth noting that downward momentum has failed to regain after multiple breaks below June lows.

“A short-term bounce can’t be ruled out; it would be interesting to see if the index can form a base and reclaim recent high near 3810/3840. This must be overcome for affirming a meaningful up move.”