NY-SP-500 : Under Pressure
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05/22/2012 | 09:08am
Opinion : Bearish under 1360
Target price : 1290 Potential: 5.15%
Stop loss: 1380
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In the United States, the imperturbable rise of financial markets in recent weeks was abruptly cut, the S&P 500 lost 4.3% over the past week, its biggest weekly decline since the beginning of the year. Continued uncertainty in Greece, growing doubts about global economic growth and the bad impression left by the IPO of Facebook doomed finally the optimism of U.S. investors.
By early this week, Wall Street makes a technical rebound supported by the G8 declarations in favor of supporting growth and maintenance of Greece in the Eurozone. The NYSE benefits in parallel from a movement of purchases on the oversold technology stocks in the short term as Apple or Yahoo.
However, financial operators remain skeptical, arguing that the rebound should quickly meet strong resistance areas in a rather gloomy economic climate. Caution should therefore be appropriate in the coming days in the absence of major economic indicators and the end of corporate earnings season.
Technically, the S&P 500 is now bearish in daily data below the 1360 points threshold coinciding with the 20-day moving average. The most aggressive may open short positions when approaching these levels to target a return to 1290 points and then to the level of 1265 points, corresponding to a key threshold in weekly data. Crossing up the 1360 points would invalidate this scenario and would argue for a return on the highest annual.
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Rodolphe Steffan
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