Summary:
- Stock indices around the globe are on the rise today
- US500 moves above prior resistance at 2436
- Morgan Stanley says correction in US stocks is over
Stock markets are in a bullish mood today with gains seen in Frankfurt, London and New York as equities attempt to recover some of their recent declines. The UK100 is currently the best performer and higher by just over 1%, but there are notable gains seen in all the major benchmarks.
Stock indices are enjoying a good day of gains with the UK100 leading the way. Source: XTB.com
Correction, what correction? Morgan Stanley have today pointed out some positive divergence noted by their technical team which they believe shows that the recent correction is over. If they are correct in their assertion the “correction” will have amounted to a pullback approximately in the US500 (S&P500 underlying) from its all time high of 2488.
Morgan Stanley point to a divergence between the recent price in the S&P500 (US500 on xStation) and the RSI and a risk index to suggest that the “correction” is over. Source: Bloomberg
In moving higher since the Wall Street open the US500 has broken above prior resistance at 2436. This paves the way for further gains with little by the way of swing levels seen until 2460. As for support, prior resistance at 2436 could now be seen as the first level to look to.
The US500 has broken above prior resistance at 2436 since the Wall Street open. Source: xStation