As US stocks test the top of a range that has held for months, two widely used analytical styles appear to be painting conflicting scenarios for where they might go next
Technical indicators such as equity price movement largely show stocks are poised to continue a rally that has seen the S&P 500 climb 8% year-to-date, analysts who track them said. Many investors who look to fundamentals, on the other hand, see choppy waters ahead when they study measures like corporate earnings and valuations.
"Everybody is very, very negative," but from a technical perspective, the market looks good, he said.has traded in a 9.7 percentage point range year-to-date, its narrowest range for comparable periods since 2017. With the index now at 4,129.79 and 16% above its October lows, technicians see evidence it can extend its gains.
Many technicians also say the market’s year-to-date resilience bodes well for stocks. The S&P 500 has traded higher 83% of the time for the full year, returning an average 13.73%, when it hasn't dropped below the preceding year’s December low in the first quarter, a Piper Sandler analysis showed. Not all technical indicators are rosy, though. A recent JPMorgan report noted the market's "underwhelming breadth," with this year's gains mostly driven by a handful of megacap stocks.Patrick Kaser, head of the fundamental equity team at Brandywine Global, is preparing his portfolios for a potential U.S. recession by reducing exposure to economically sensitive sectors such as financials and industrials.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Natural Gas Price Analysis: XNG/USD stays bearish below $2.40 key levelNatural Gas (XNG/USD) consolidates the heaviest daily fall in five weeks, marked the previous day, around $2.38 during early Thursday. Even so, the en
Read more »
USD/CHF Price Analysis: Takes a bearish turn as sellers move in around 0.9000USD/CHF reversed its course after hitting a weekly high of 0.9003 and fell, as the sellers remain committed to defending the 0.9000 figure. After cons
Read more »
Tesla's stock confirms bearish 'double top,' and other chart patternsThe selloff in Tesla's stock Thursday confirms a bearish short-term "double-top" pattern, like the one 7 months ago that preceded the year-end 2022...
Read more »
GBP/USD Forex Signal: Neutral Sentiment With a Bearish BiasThe GBP/USD exchange rate bounced back after the strong jobs numbers from the United Kingdom.
Read more »
Investors are the most bearish in 5 months as credit crunch hits growthFund managers surveyed by Bank of America are increasingly pessimistic about the U.S. economy following the collapse of Silicon Valley Bank in early March.
Read more »
Natural Gas Forecast: Continues to See Choppy and BearishNatural gas has been facing bearish momentum over the last few sessions, despite a recent recovery.
Read more »