April 2014

S&P500: Bearish signals remain

Long-term signals for the S&P500 are bearish even though the uptrend remains intact, according to Andy Dodd at Louis Capital Markets. Resistance exists at 1881 and 1887.5 although significant support at 1832 and 1812 needs to be breached for a meaningful reversal.

S&P500 to test support at 1800

BNP Paribas remain bullish for the longer-term outlook for US stocks despite the likelihood that the S&P500 will test support at 1800, at the long-term trendline. If this is broken in this correction, the bank sees the next support at 1740. Their longer-term bullish outlook remains in place as prices are still above the 200-day MA.

Will stock ratio confirm US yield rally?

The recent rise of the US 10-year Treasury yield and the prospect of a sustained rally beyond 3% may lack conviction, according to Mike Sacchitello of Stone McCarthy Research Associates. The US financials/utilities ratio, historically a reliable indicator, has failed to support the rally.