Tags: jpmorgan | stock | drop | bullish

JPMorgan: 3-Day Stock Drop Hasn't Killed Bullish Trend

JPMorgan: 3-Day Stock Drop Hasn't Killed Bullish Trend
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Wednesday, 09 September 2020 08:59 AM

U.S. stocks remain in a broader uptrend despite a three-day tumble in share prices, JPMorgan Chase & Co.’s technical strategists said.

The S&P 500 index has fallen 7% and the Nasdaq-100 gauge 11% in the past three sessions. While momentum had become stretched, bearish chart patterns marking the top of a rally are absent and key support levels held, strategists Jason Hunter and Alix Tepper Floman wrote in a note.

For the S&P 500, the “price pattern and extreme sentiment readings that typically develop at the end of a rally are not present, which leads us to believe the market is not poised to enter a protracted bear trend at the moment,” they wrote.

Futures on both the S&P 500 and Nasdaq-100 stabilized on Wednesday during Asian trading, signaling a steadier start for U.S. shares. The recent declines in the broader benchmark pared its surge from March’s pandemic low to 49%, while the technology gauge is up 58%.

Investors remain divided on how long equities can keep rallying even with massive central bank and fiscal support, given the scale of the economic damage from the coronavirus outbreak. The scope for gains in the weeks ahead could be limited by “overbought short- to medium-term momentum conditions,” according to the note.

The S&P 500, currently at 3,331.84, can find its footing near the 3,223-3,305 level, the strategists wrote. The Nasdaq-100 can stabilize near current levels and once again approach the recent record intraday highs, they added.

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U.S. stocks remain in a broader uptrend despite a three-day tumble in share prices, JPMorgan Chase & Co.'s technical strategists said.
jpmorgan, stock, drop, bullish
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2020-59-09
Wednesday, 09 September 2020 08:59 AM
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