Although short-term technicals continue to look bearish, major support levels remain for US stocks, according to Brian Larose at United-ICAP. Despite a case for a major topping pattern in the S&P, support will need to be broken at 1767-1762, 1744-1736, and 1681 for this to be confirmed.
Riccardo Ronco of Aviate Global has noted that the VIX/MOVE ratio (S&P/T Note vol) has recently hit a low after moving in a well defined trading range over the last 20 years. This, he says, indicates that equity versus volatility will increase significantly in 2014.
As the Amazon share price continues to rise, breaking through a key level at 397.03, the stock may be set to rise further still to 472.53, according to Walter Zimmermann at United-ICAP.
A bottoming pattern in the FTSEMIB vs MXWO ($ adj) could mean a significant outperformance by the Italian index if the ratio resistance level (see chart) is broken, according to Riccardo Ronco at Aviate Global.
Maxime Viemont of BNP Paribas Personal Investors presents his ranking of 300 stocks from the Eurostoxx index based on his team’s trend-following quant model. Read more…
The S&P500 needs a break above 1850 to clear the way for a move to 1950, according to Maxime Viemont, head of technical and quantitative strategies and BNP Paribas Personal Investors in Paris. His latest weekly report also includes European stocks, bond and currencies. Read more…
The uptrend in the S&P500 should continue into Q1 although optimist sentiment data increases the risk of an intermediate 6-8% pullback, says Ari Wald at Wolfe Research. Any correction should be a buying opportunity as there are currently no signs of a market top.
Although gains in the S&P500 are becoming more selective in terms of individual stocks, this is not sufficient to indicate we are in the final stages of the bull market, says Paul Desmond of Lowry Research. Read more…
Walter Zimmermann, chief technical analyst at ICAP US, discusses how a divergence between price and momentum indicators has produced a sell signal in the S&P500.
Paul Desmond, head of research at Lowry Research, explains how evidence of significance weakness in Spanish stocks signals further weakness for the IBEX.