Halister News

(Bloomberg) -- Expiration of bearish seasonals this month and “two trips into overbought territory” in April and May have left medium-term technical setup mixed, and weekly and monthly momentum is “now at a tipping point as well,” JPMorgan technical strategist Jason Hunter says in May 22 note.

• “The recent price action has not been enough to completely derail the 2017 bear market outlook, but has pushed the view back on its heels to the point where we need to keep an open mind and watch for further price action” before committing to a different forecast
• With TY dollar-weighted put/call ratio “already trading near extreme overbought territory,” the 2.135%-2.15% yield zone is key for UST 10Y
• Sustained closes below the 200-DMA would confirm shifts in the momentum models, setting up 1.88%-2% as next resistance
• “Positions are much cleaner than they were earlier this year, leaving plenty of room for the pendulum to swing in either direction”

To contact the reporter on this story: Elizabeth Stanton in New York at estanton@bloomberg.net To contact the editors responsible for this story: Boris Korby at bkorby1@bloomberg.net Greg Chang, Elizabeth Stanton