S&P 500 May Decline Before Resuming Rally: Technical Analysis
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The Standard & Poor’s 500 Index remains “vulnerable to another down leg” before resuming its rally, according to technical analysts at UBS AG.
“We continue to favor the S&P 500 Index undergoing a classic a-b-c corrective pattern,” Zurich-based analysts Michael Riesner and Marc Mueller wrote in a report dated yesterday, adding that as long as the measure trades below the Feb. 18 high of 1,344, the benchmark gauge for U.S. stocks will suffer from “the risk of a second corrective down leg into deeper March.”