Andy Dodd, Head of Technical Research at Louis Capital Markets picks out a selection of charts that suggest the corrections of recent days may soon be over.
Of note, Dodd says:
1. GBPUSD is testing the neckline of its head-and-shoulders pattern – he expects the sell-off to resume shortly (Chart 1).
2. Volume figures for the S&P suggest the rally of recent days is running out of steam (Chart 2); yesterday (30 March) saw the lowest volume for SPY since February 24.
3. The trendline down for US 10yr yields remains in place and after yields reach (or get near to) the 1.318 resistance level he expects yields to move lower again (Chart 3).
Read the full report, including an analysis of the following markets:
EURO STOXX Banks
US 2 and 10yr Yields
STOXX Europe 600 Oil & Gas
STOXX Europe 600 Basic Resources
STOXX Europe 6000 Automobiles & Parts
STOXX Europe 6000 Food & Beverage
STOXX Europe 6000 Chemicals
S&P 500 Volume (SPY)
Nasdaq Volume (QQQ)