Monday, 28 August 2017

US stock market recovers but shows “signs of stress”

The S&P 500 rose 0.7 percent last week after having fallen for the previous two weeks.

Tom Aspray wrote that the “slight improvement in the technical readings last week suggests we might see an end to the correction in the next few weeks”.

Nevertheless, he is “cautious given the lack of strong new bullish signals and negative seasonal bias in late August and in September” as well as the “apparent complacency of many investors and some Wall Street pros”.

Adam Shell wrote that “signs of stress are emerging” in the US stock market.

Among the signs, Shell noted that safe haven investments are in rally mode, smaller companies and transportation companies are performing poorly and strong earnings have been ignored by investors.

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