S&P 500: Flying high? - BBH
The S&P had a tough start to the week as carrying over from the previous week the S&P 500 fell for four sessions, its longest losing streak since March, abut still managed to close higher for the third week in a row, notes the research team at BBH.
“It gapped higher ahead of the weekend and did not look back. The gap is found between roughly 2641 and 2644. Indications from key Senators that the Alternative Minimum Tax would not be included in the final bill may helped equities recover. The NASDAQ also gapped higher ahead of the weekend, but it was not quite enough to lift in on a weekly basis. Once again, investors seemed keen to buy the pullback in the stock market.”
“The US 10-year yield has largely been confined to a 2.30% to 2.40% since late September. The range is not rock solid as there have been several false breaks. However, it is interesting to note that the five, 20 and 50-day moving averages converge in the middle of the range. The December 10-year note futures contract is showing little propensity to move out of the 124-06 and 125-06 range. The technical indicators are not generating strong signals, which warn that range-trading may persist.”