June 2014

Oversold BRL poised for temporary bounce

An oversold Brazilian Real is set for a bounce although the longer-term outlook remains bearish, says George Davis at RBC Capital Markets. Support at 2.1832 and 2.2000 is in place after the major trend reversal below 2.2692 in March but resistance at 2.2646-2.2886 will present selling opportunities.

S&P500 set for further gains

The interruption of a broadening top pattern in the S&P500 means that further gains are likely for the index in the months ahead, says Peter Lee at UBS. He also discusses if the super bull cycle in commodities has really ended and the continued bearish outlook for EURUSD.

Retail sector a red flag for S&P500

Divergence between the S&P500 and the retail sector within it is a red flag that the market may be nearing a top, says Riccardo Ronco at Aviate Global. Although the trend in the overall market remains bullish for the present, the 52-week % spread of retail/S&P has fallen sharply since the start of the year.