Will Chawner: Bears vs Bulls, or vice versa?
My thanks to colleague Will Chawner of Stockcube Research
for his global macro technical review.
It is posted without further comment but here is an introductory summary
David Fuller's view Equity Indices:
The regional leaders maintain strong uptrends; however, there are now fewer indices outperforming the S&P 500.
Equity Sectors:
The leadership is also becoming thinner at the sector level, as defensive sectors lose downtrend momentum relative to the cyclicals.
US Dollar:
The dollar has rallied to correct the extension from its 2009 downtrend, highlighting the possibility of basing action.
US Yields:
US 10yr Yields remain beneath 4%, the level above which we anticipate a switch away from equities. The US Yield Curve also continues to highlight favourable short-term conditions.
Sovereign CDS Spreads:
Sentiment towards sovereign debt has worsened, highlighted by basing action outside Europe and acceleration within.