There's support for a short term bounce, but S&P 500 could fall to test 1730 in the months ahead, says technical strategist Katie Stockton of BTIG.
Correlations back for today stocks surging in tandem with oil prices. Let's start the market's moves with Katie Stockton she's chief technical strategist at B Kia. Welcome back it gave up we saw some diversity to an oil and stop prices last week. But today there N'sync what do you see look at the trust propelling today's market action especially in light of last week's nearly 3% gain up. Fortunate that charts never really tell you why app but they certainly tell you why and yeah obviously are in the midst of a relief rally your oversold bounce for the broader market it's it's become a fairly broad based then I read something that's very. As stated that they said he knows short covering is often the driver of a rally. And but it doesn't mean necessarily that unsustainable so I thought that was an interesting point that could be short covering it could we beat the band to net oil. But to me I think we really need to look at it as something that short term at this point in asking. Or yeah so that's what people noticed in the last to leave that we saw some short covering that's what rights you know we have that release may not be sustainable so. It your view why isn't sustainable for the intermediate term short term EC about so short side. Has all the market. Conditions have returned. And yet we do what we overbought sells eggs and haven't seen it settled down to an amendment to suggest that overbought conditions matter. I think that probably acres at it closer but it hasn't yes I've which means it. It should have trouble getting about this 1950 area. Decisively. In the days had sent tens EC short term assets out there. But then packing for Atlanta high established on weaker intermediate term. So perhaps that 2000 though. What would you see is that level war we're going to see the overbought the cells. Six mean it's it's hard to find great right it's really where it sat up and look for indicators and I'm not Smart enough to get back into the number that would get to that point but I do feel like it's somewhere between 1915. As well be the next real hurdles are. It on the flip side though wouldn't he support for this and beef up. So down to our ports is really initially at 1820 in the pack is backed that effort that went fourteen now. Nice to fill a lot closer of course as the protests. That far away her for comfort. And the letter that level we get past seventeen there which some minor support level. Angela at that level we get to pass that teens happening which is something to mean it down at target but it does dictates caution here. That if you were to take at this 1820. Well in hand downside risk is right. Okay and and we've seen in the US I guess exercise global market leadership so far of a you sing a note that. Easy possibly hospital commodity racist is Australia or Canada coming back is it to visit to put on the violence now is that too early this. It it might be early but not necessarily too early so I think you know in the early stages of what could be and be seen fees it could be prolonged basing these if indeed the US market has entered this bear market news so. I wouldn't be too quick to jump on it and yet and we want to acknowledge that there's something happening for rotational stand playing globally. That some of these commodity producers her you know countries that tend to it do better wouldn't commodity prices stabilize. They're doing a bit better and relatives and acquaintances the US has had its stronghold globally and it seems to be poised to lose that stronghold in the months ahead. Okay so in shorts and short term more bounce but intermediate wise. You see the market and things like we've. Our thanks to Katie started BT IG I'm Fred and this is.