Zero Hedge
0
All posts from Zero Hedge
Zero Hedge in Zero Hedge,

This Is What A Total Breakdown In Market Internals Looks Like

Below-the-surface breakdowns strengthen BCA Research's conviction that investors should stay defensive. Technically, the S&P 500 looks weak. Breadth has thinned considerably this year. Less than 50% of S&P 500 industry groups are trading above their 40-week moving average and/or have a positive 52-week rate of change.

This is what a total breakdown in market internals looks like...

 

We interpret this week's relatively unchanged FOMC statement to mean that unless payroll data seriously disappoints, a September rate rise is a go. It would buck the historical trend if U.S. equity prices were to come out unscathed in the run-up to a rate rise. This, at a time when the potential for further global growth disappointment abounds.

Bottom Line: Given the weak technical backdrop, there is little incentive to put fresh money to work in stocks at the moment, even despite the lack of attractive investment alternatives.

Read more here...

Source: BCA Research