Monday, June 12, 2017

Bearish Calls For US Stocks Not Confirmed by Message of Market

While a risk of summer correction is possible, this message of fear has yet to be confirmed by the message of the market. Price, volume, sentiment, and leverage define the message of the market for US stocks.

Headline: JPMorgan sees a 'summer top' and market correction into the fall

JPMorgan's top technical analyst sees a stock market drop ahead in the charts.

"The market keeps a bullish trajectory for now, but we see a growing probability for a summer top and correction into [the] fall," Jason Hunter, the firm's head of global fixed income and U.S. equity technical strategy said in a Wednesday note.

"If U.S. economic surprise indices do not rebound and lead to a bearish trend reversal in Treasuries this summer, we ultimately think the current trend deceleration now present in equity indices will turn into bearish reversal patterns, which in turn could lead to a tradable correction into the fall," Hunter said in the note.



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