Corrective phase of U.S. equities not over, according to technical indicators
“A number of technical indicators have been very helpful in timing the end of prior corrective phases when cyclical equity conditions were still generally constructive, i.e. a sustainable, low inflation global economic expansion and the absence of significantly overvalued conditions,” BCA Research said yesterday. “Currently, these indicators suggest that the corrective action in the broad U.S. equity averages has further to go.
The research note mentions the following indicators.
The report concludes that while the cyclical backdrop remains constructive for equities, it is too soon to declare that the corrective process has run its course.
Source: BCA Research, May 26, 2011.
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