April 5 - Red flags on technical indicators suggest this equity bull is tiring. Credit Suisse technical analyst David Sneddon takes us through his analysis of the S&P 500 and DJ Stoxx 600.
Winning -- -- raging bull market to become a birdie bear. As the SMP 500 and Dow hit record high raise some red flags already popping up so it's time for equity investors to head for the hills. Well the momentum is giving the warning signal. Reticent but beyond balanced front which is a favorite indicator of mine because it. And really reflects what the underlying vote remains on the train it's not outright volume into its could accuse of an indicator. And this has been confirmed in the -- all this way. Until last week until the last two weeks in fact I'm for the first time we're not saying the volume continued high. As the markets we've continued high so I think this is another red flag that's not gonna help. And we ran against -- this is still a market is trending -- but we really need to -- trailing stops and have very tight because the -- started to me quite against us. Now we take a step back looking at S&P this is okay and -- state. Would you say this is -- and sold is that is another red flag coming up tight I think it's ten and that I think and I know what you're saying in terms if you look back at 1015 years in the market to -- can see the peace that we saw in 2002007. A McConnell coming in the same levels. Clearly when we get to any major peak in the market there is this risk of of a major topic -- and head and shoulders top and that double talk B the triple topple any other type offense until we like. But we are right -- -- went to make the -- This is that they can chose Tom Foreman. We knew a lot more information place and we have now sent you something to have -- about about not just -- -- to to be aware of but I think it's too early to make that -- clearly some difference kind but they're clearly some reference of the missing and if we look at on our -- -- -- commodity that was shown as we can chalk. We can see the -- side is being extremely overbought territories. And typically when you get to this height of the few times and the market -- when you're missing is facts passing bearish divergence -- an amendment and you aren't. It's actually confirming the means -- environments -- it's kind of hard for that its warning all of a move just becoming too fast we sustained. But it's not warning has yet as as a major incident downtown a major break in the market let's move on to Europe and the Sox 600 now. Quite a few red flags appearing there on the ISI and Matt dean -- let's take us through not so ridiculous on 208 it. Clearly a very different -- -- to the US market S&P -- up at a record -- Your -- -- as well we are as high as. Agency are some momentum on the Stoxx 600 as we push to a new high above this resistance has not moved to your heart a classic red flag map the momentum is kind of grinding -- -- -- What we have. He's from the mementos on the -- a rally. That's moving ahead but that really weakening quite significantly. So the miss it's from David is Korea. Just stops tight because he's becoming more risky and hey it's two brands that sell portion.