/BUNDS: JPM analysts add that "a.....>

US TSYS/STOCKS: /BUNDS: JPM analysts add that "a NASDAQ 100 break below

5,633-5,709 and S&P 500 break below 2,390-2,420 support zones wd confirm the

bearish technical setup and likely lead to an acceleration to the downside.

Until then, look for residual strength to fade from attempts to make new rally

highs into Sep. We continue to think a fall pullback will represent a buying

opportunity" with base-case outlk that "S&P 500 cd correct about 8% peak to

trough and the NASDAQ 100 about 15%."

- They add despite US Large Cap equity resilience, other global mkts "already

trade with a risk-off bias including DM sovereign bonds. We suspect that a

flight-to-quality move into the fall could press US 10-yr note yld through 2.0%,

but that wld likely push some of our more reliable indicators into extreme

territory and set the market up for quality medium-term sell signals into the

4Q. The last time the mkt saw that setup was just after the BREXIT vote."

- "What we think cld be a short-lived 10-yr Bund rally into the 0.20s cld

represent a good opportunity to set a medium-term short for a backup within the

2017 range," they said.