Technicians urge caution for U.S. stocks.
In a research note sent yesterday, John Kosar, director of research at Schaumburg, Illinois–based financial information services provider Asbury Research, wrote that despite a modest rebound, U.S. equity markets remain vulnerable to a deeper decline:
“The U.S. broad market failed to resume its advance over the past month and instead collapsed at the end of last week, which indicates that a pullback/correction is underway. This negative near-term bias is supported by contracting asset flows, widening corporate bond spreads and elevated volatility.”
Kosar is noted among technical analysts for being highly cognizant of fundamental and macroeconomic factors, in addition to price movements.