Weekly Market Review 201220

This is a discussion on Weekly Market Review 201220 within the Technical Analysis forums, part of the Methods category; Stock market continued to suffer from the Greece headline this past week, where the S&P500 fell for six straight days ...

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Old May 21, 2012, 12:11am   #1
Joined Jun 2011
Post Weekly Market Review 201220

Stock market continued to suffer from the Greece headline this past week, where the S&P500 fell for six straight days and posted its worst weekly return (-4.3%) since late November 2011. On the other hand, bonds market strengthened as the 10yr Treasury yield moved in coincident with weaker stocks performance, and the benchmark is currently trading at its lowest level ever in the history at 1.71 as of this Friday. Aside from the technical, Thursday's economic releases pointed to a longer slowdown for business activities, where both the leading indicators (-0.1% vs. 0.1% est.) and the Philly Fed (-5.8 vs. 10.0 est.) turned below their horizons since September 2011. Looking forward next week, stocks will continue to challenge with the 1290 technical level on the SPX, as a major Fibonacci retracement level of this rally; and the Michigan sentiment reading will be the key mover for rate products.

Technical Highlights:
• Stocks took their biggest hit for the year; however, a short-term rebound is expected as the S&P reached its head-and-shoulders downside target, approx. 1290, which is also the major mark for number of technical readings (i.e. the 50% and 61.8% Fibonacci ratio, and the peak of Oct. 2011).
• Stocks are near their bearish extreme, which reflected from the low reading on percentage of stocks above 50 day moving average for individual securities.
• RSMCs fall sharply as defensive stocks start to follow with the direction of the overall market, which is signaling that the end of the trend is near.
• Stocks traded modestly lower across different sectors, defensive stocks continue to be the key player forward looking.
• The 10yr is trading at its historical low level; Rate products are showing massive unusual movement (negative correlation) between the long-term and short-term maturity bonds.

read more at...
http://plus.alpbeta.com/report/201220.pdf

Last edited by alpbeta; May 21, 2012 at 12:20am.
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