Craig Johnson, CMT, CFA, is a managing director and chief market technician, and directs Piper Sandler's technical research group. He is also a past president of the CMT Association and is on the Technical Analysis Educational Foundation board.
US equities have staged an impressive comeback from the March lows as they climbed their way out of bear market territory. The shift to decelerating Covid-19 cases has been the primary catalyst behind the recovery. However, the transition from rising to peak case counts did not come without economic pain, as the market recalibrated expectations to what we consider a worst-case scenario. Washington has reacted relatively quickly with unprecedented stimulus and a "Do whatever it takes" Federal Reserve policy response. The historic degree of stimulus, along with record-low interest rates, should provide valuation support as the market navigates around a turbulent earnings season. Based on this backdrop, Craig Johnson believes the pain trade has now flipped from down to up, as investors look ahead with optimism for reopening the US economy.
Various geopolitical issues are challenging the strength of equities. The internal of the market are showing a narrowing breadth. Expect to see bac
Technical Analyst Craig Johnson breaks down the outlook for equities for the remainder of 2019. There is no catalyst for equities to make new highs