Wall Street's No. 1 Technical Analyst Says 'Fade This Breakout'
- Stock rally lacks volume and breadth support, deGraaf says
- Rebound in financial shares, credit market has been lackluster
Reasons Behind the Rally in Equity Markets
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One of the most widely-followed Wall Street analysts isn’t convinced that the recent rally in U.S. stocks means the worst is over.
While the Standard & Poor’s 500 Index’s 2.4 percent surge Tuesday pushed it through its average price over the past 50 days and above the 1,950 level, the three-week rally that’s restored more than $1.5 trillion to U.S. shares hasn’t come with sufficient trading volume or lifted enough individual stocks to signal an end to the recent downturn, said Jeff deGraaf, chairman at New York-based Renaissance Macro Research LLC.