Societe Generale: S&P 500 expected to rally to 200-day SMA

Societe Generale: S&P 500 expected to rally to 200-day SMA

The S&P 500 finally held the June lows, which triggered the rally. Societe Generale analyst Ren believes that the follow-up is expected to approach the 200-day average (about 4070-4120 points). It is worth noting that the monthly Relative Strength Index (RSI) has remained at the low end of the range since 2010. Notably, the index has been struggling to recover its 200-day SMA since April, which is likely to be an important near-term resistance level. Holding the short-term ascending channel near 3815 is critical to a sustained rally. An interruption could lead the index to another dip to 3630-3700.