Technical Trend Outlook

We see increasing vulnerability across major US stock markets, with the benchmark S&P 500 showing signs of exhaustion after the latest narrow advance. While Europe and the UK stock indices remain in constructive uptrends, Japan’s rally appears overextended and due for a pause.

What’s more in this report:

Is the recent pullback in US stock indices just a small dip in the bull run, or the start of a larger stock market correction?

What’s more in this report:

• The Nikkei-225 index keeps hitting record highs, but the risk of a correction is high and increasing.
• Blow-off top for gold hints at a prolonged cooling-off period.
• WTI may have staged another successful test of the very significant price support zone just above 55. 
   

US stock markets continue to show impressive resilience, but signs of exhaustion are emerging. Precious metals appear to be in a final blow-off phase after months of near-vertical gains. In short, the risk of a more prolonged cooling-off period is high...