Risk of continuation in decline is present – Societe Generale

S&P 500 has rebounded after forming interim support near 5500pts representing the 61.8% retracement from last August, Societe Generale’s FX analysts report.

Gap-up level at 5710pts is first support

“It has gapped up yesterday and is inching higher towards the lower limit of previous multi-month range. December low of 5810/5830pts and the 50-DMA near 5910pts are next short-term hurdles. If the index struggles to overcome these resistances, there could be risk of continuation in decline. Gap-up level at 5710pts is first support.”