JPM's Jason Hunter and Alix Tepper...>

US TSYS/STOCKS: JPM's Jason Hunter and Alix Tepper said in their US Equity Index

and Global Fixed Income Technical Update that "equity indices holding support,

but technicals still favor a breakdown into fall;" they add the US "rates market

already has risk-off tone."

- They added the "US equity rally stalls after the S&P 500 Index and NASDAQ 100

Index hit our 2017 base-case target zones, but both markets have held key

support levels in Aug. Despite the resilient price action, multiple technical

warning flags suggest a high probability that the indices will struggle to

extend the rallies over the near term, and will correct in the Sep-Oct time

frame. Market breadth continues to deteriorate as fewer sectors and index

members maintain solid uptrends, momentum indicators have already triggered

bearish signals after both broad market indices saw initial rejections of key

resistance zones, and seasonality stays negative until early-Oct."