Weekly Technical Essentials

Eurozone and US equity pessimism stretched.

Equity pessimism has reached stretched levels in the eurozone, US and EM. Since 2003, sub-4 SBIs have been followed by an average 7%+ rise in the S&P 500. Pessimism on US Growth versus Value also hit stretched levels last week.

Bonds and the US dollar stretched on a number of fronts.

Bond pessimism is stretched on a number of fronts globally, including the US and EM local currency bonds. UST 10Y yield overbought as long-term trendline resistance tested. US dollar optimism is also stretched, alongside G7 FX volatility.

Copper sentiment badly tarnished versus Gold.

In commodities, industrial metals have retreated versus precious in the face of stretched optimism. However, Copper pessimism versus Gold has now hit stretched levels as the relative retests 12-month support levels.