An increase in NYSE margin debt, as the US stock market continues to rally, could be at a turning point suggesting a possible top in stocks, says Max Knudsen at ADS Securities.
The underlying trend of GBP/JPY remains very strong with consolidation under the 173.55/65 level increasing the potential for a strong upward breakout, says Martin Jones at Informa Global Markets.
The market remains bearish for 10-year gilts after reaching the target of 109.24, says Dmytro Bondar at RBS. However, as prices approach the lower Bollinger band, a bullish correction/consolidation should be expected but this will be followed by the return of downside pressure.
The uptrend in the S&P500 is still intact, according to Andy Dodd at Louis Capital Markets, despite recent calls of an approaching top in US stocks. Apart from Fibonacci levels, prices face no significant resistance levels going forward, he says.
Brent crude remains in a long-term consolidation pattern with declining highs putting the balance of risks on the downside, says Maxime Viemont’s team at BNP Paribas. Meanwhile, gold looks set to test its 12 year trendline a break of which would pave the way for a significant downward correction. He also discusses stocks, bonds and FX.
The S&P500 still has further to go towards the 1950 level before a correction is due, says Walter Zimmermann of United-ICAP. In his weekly technical price risk report, he also discusses the downside risks that exist for the 10-year Treasury yield and euro.