Technical Analysis July 2020 – MJT S.A.

Technical Analysis July 2020

Offered to you in conjunction with Management Joint Trust S.A.

S&P500 – daily graph or the perspective over the next 2 to 3 months

Executive Summary:

Despite short term downside risk, the S&P500 and the Eurostoxx 50 should resume their uptrend, with likely new all-time-highs into mid/late summer.

In the initial stages of this new leg up, Cyclical assets, such as US Small Caps are likely to outperform, probably into early/mid August as the rally could be accompanied by a new bounce in US long term yields.

EuroStoxx 50 Index:

Downside risk towards 3’100 – 3’000 in the coming weeks. Thereafter likely new all-time-highs into mid/late summer.

S&P500 Index: 

Despite the current uptrend, there is a downside risk towards the mid/low 2’900s in the coming weeks. Thereafter likely new all-time-highs into mid/late summer.

US10Y yields:

Probably bouncing higher from early/mid July into early/mid August, possibly into the 0.9–1.2%.

Russell 2000 vs the S&P500 Index:

The ratio is likely to bounce between 8% and 13% from early / mid July into August as both equities rise and yields bounce.

 

Further link: Tactical Analysis July 2020 JMT

All opinions, news, research, analyses, prices or other information in the article are provided as general market commentary and do not constitute any financial advice. No economical business decisions should be based solely on the content of this article