The S&P 500 edged higher after US jobless claims rose moderately last week . The index has struggled in the supply zone (4130) from last September. The tumble below the base of the previous bullish momentum at 3950 has thrown the bulls into disarray. This lack of follow-through might lead to a bearish reversal as the buy side may choose to bail out. Only a climb back above the psychological level of 4000 would attract more interest and signal a recovery. Below 3905, the bears would take over and press towards 3840.
