Log In

The Technical Analyst

Main Menu

  • Home
  • Research
    • Provider Directory
  • Training
    • Introduction
    • Calendar
    • In-house training
    • e-Learning
    • Our clients
    • Testimonials
  • Awards
  • Contact
  • Sign Up

Oversold rates may provide firepower for S&P

Friday 4 January 2019 17:06 GMT

US 10 year yields are extremely oversold and this may give the S&P an opportunity for a fresh bull run, says Frank Cappelleri, Chief Market Technician at Instinet.

Cappelleri notes how it has been about a year since US 10 year yields broke powerfully above 2.60%, giving a pattern target of 3.90% (see Chart 1). This breakout is now being challenged with rates having dropped dramatically since late 2018; from 3.23% to current levels near 2.60%. He thinks, however, this may be ‘a huge bear trap’ and that the 3.90% pattern target may still be in play if current levels hold.

Given the close correlation between the S&P and 10 year yields (Chart 2), Cappelleri says this may give the S&P an opportunity to recover and achieve its bullish 2,590 target (see Chart 3), though he warns that yields can remain deeply oversold for some time and patience may be required.

 

 

Research Archives

2022

  • July
  • June
  • May
  • April
  • March
  • February
  • January

2021

  • December
  • November
  • October
  • September
  • August
  • July
  • June
  • May
  • April
  • March
  • February
  • January

2020

  • December
  • November
  • October
  • September
  • August
  • July
  • June
  • May
  • April
  • March
  • February
  • January

2019

  • December
  • November
  • October
  • September
  • August
  • July
  • June
  • May
  • April
  • March
  • February
  • January

2018

  • December
  • November
  • October
  • September
  • August
  • July
  • June
  • May
  • April
  • March
  • February
  • January

2017

  • December
  • November
  • October
  • September
  • August
  • July
  • June
  • May
  • April
  • March
  • February
  • January

2016

  • December
  • November
  • October
  • September
  • August
  • July
  • June
  • May
  • April
  • March
  • February
  • January

2015

  • December
  • November
  • October
  • September
  • August
  • July
  • June
  • May
  • April
  • March
  • February
  • January

2014

  • December
  • November
  • October
  • September
  • August
  • July
  • June
  • May
  • April
  • March
  • February
  • January

2013

  • December
  • October
  • September
  • August
  • July

2004 – 12

Research Categories

AI & Data Science

Commodities & Energy

Equities

Fixed Income

FX

Multi-Asset

Software & Technology

Get in Touch

Global Markets Media T: +44 (0)1483 573150
E:editor@technicalanalyst.co.uk
Sign Up
A:
The Technical Analyst
96 High Street
Guildford, Surrey, GU1 3HE
United Kingdom

The Technical Analyst

Since its launch in 2004, The Technical Analyst has brought technical analysis research and commentary to the institutional financial markets, supported by regular events and training courses.

The Technical Analyst is a division of Global Markets Media Ltd.

Copyright © 2022 Global Markets Media

Footer Menu

  • Cookies
  • Disclaimer
Design by Web Design London
This website uses cookies to store information on your computer. See our cookie policy for details on how to block cookies.
I am happy to proceed