S&P 500: Uptrend to extend once the index establishes beyond 4195/4220 – SocGen

S&P 500 is probing upper limit of base near 4195/4220. Economists at Société Générale expect the uptrend to extend beyond here.

Golden crossover points towards potential upside

“S&P 500 is in vicinity to the crucial graphical resistance of 4195/4220 representing peaks of February and a previous down gap. It has been evolving within a base since October. It is worth noting that 50-DMA has crossed above the 200-DMA forming a golden crossover; this points towards potential upside. An upside break looks imminent.” 

“Once the index establishes beyond 4195/4220, the uptrend is expected to extend. Next potential objectives could be at last August's high of 4320 and 4510.”  

“Should a short-term pullback develop, ascending trend line since October at 3930 should provide support.”