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Equities Roundup: Bullish Conditions Remain

US STOCKS
  • US stocks trading weaker in late afternoon trade. After tapping the highest level since mid-February in late overnight trade (4171.25) SPX Eminis reversed course after the open, trading as low 4116.75 early in the second half.
  • Generally quiet trade in the lead-up to Wednesday morning's ADP employment data, stocks appeared to retreat along with sharp declines in Treasury yields after lower than expected JOLTS jobs data (openings rate 9.931M vs. 10.500M est).
  • Industrials, Energy and Materials sectors the top three S&P index laggers with Financials not far behind, banks underperforming (Zion -6.1%, First Republic -5.9, Key Bank -5.7%).
  • For a technical point of view, the late overnight rally re-enforced bullish conditions. The move higher has also resulted in a break of 4148.48, 76.4% of the Feb 2 - Mar 13 downleg. This signals scope for an extension towards 4205.50, the Feb 16 high ahead of 4244.00, the Feb 2 high and a key medium-term resistance. Firm support lies at 4032.81, the 50-day EMA.

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