The short- to medium-term upside is limited for most US and European equity markets, with many indices approaching key resistance levels, according to BNP Paribas.
BNP Paribas says the bounce in equities has been much stronger than expected and most are in overbought territory in the short-term. This coincides with them being close to medium-term resistance, this being: i) The top part of the long-term bullish channel for S&P 500; The Q2 and Q3 previous tops for EUROSTOXX 50; iii) The 2014 previous top for DAX 30; and iv) The Q3 top and June bearish gap for CAC 40.
BNP Paribas is therefore cautious on these markets in the short-term, preferring to see corrections before buying.
For details, see BNP Paribas Personal Investor’s Weekly Technical Review of 15 markets, including:
Three stocks: United Internet, Wirecard, Eurotunnel