Hello and welcome back to the JUCO scopus to use here in Geneva it's time for the technical viewpoint of the market with mr. Bruno SJ so welcome back Bruno good morning Jessica so two weeks ago you were very prudent on US equities so how do you see it now well let's look first at the daily chart of the sp500 and as we see where we do have typical figures which is a triangle with a resistance around 1990 and rising support with support around 1940 and momentum is slowly moving up on both sides here down so it's it's relatively likely that if we break 1990 we'll move to the next level which is the former floor here on july twenty forty so is the S&P the key factor well the SP yesterday evening if we look at Baoli charts we have the same pattern of a triangle we see the really in the afternoon and later in the session it went up and it went up to this level 1988 1990 also in addition to that with your element that technician use which is this Red Cloud band here usually short-term trader will react positively and tend to buy once we break above it and that's relatively likely to happen but I think there are still risk of failures Sabrina what is worrying you well let's look at the different internals of the S&P 500 namely the sector the u.s. sectors and we see that first of all we have a first group of three sectors to risk discretionary technology and industrials which have a relative strength which is our rising line here in da to the right an orange line which is making new highs what does it mean that means that these sectors are outperforming the S&P so this sector are the locomotive of the SNP taking up or lifting it up but when we look at the detail of the sector price we notice that where we closed yesterday was effectively utter resistance ceiling but above it there are more over ceilings if you wish and these other ceilings are represented by the dotted red line here coming up close to the moving average of forty days and so on so a spike up can happen but it.

Can also fail later on if we look at the other sector which is drying up yes and if you wish the technology people used to think that big techno caps are dragging the sector of the ESP up this is indeed the case but we see also similar pattern where we have descending trendline and the third sub sector industrial had been relatively weak in during June and July it was descending relative strength flying it's now moving up again which is good news because that means that the sector which has been sold is probably rebounding but we also see here in the detail that we do have quite a few resistance to align namely near the upper Bollinger Band which is usually the upper part of the range where it could go so here it's a little bit wishy-washy and printer what about the other sectors while the other sectors what it remains your owns two group three groups first of all the so-called defensive sectors health care and staples bad Luck's even though the relative strength is about up if we just give it the benefit of the doubt really really on a nominal basis the sector's is not doing much and we can expect further sideways move staples a little bit better because it's trying a form of a triangle like the SNP so it could move up a little bit but the relative strength is not really strong as Casey you flagged then we've got a second group which is financial and utilities both are usually impacted by interest rates we should see as we expect interest rate to rise a stronger relative strengths but we do not see that it's about flat and here we are still below key resistances and the utilities even worse we're at the bottom of the range and rebound is quite modest and finally we have the two old draggers the one which were dragging the market down namely materials and energy both again after trying to bottom the relative strike is moving down here and I will see also the same similar things for the SNP on arrange we see that despite the fact that oil has rebounded that the.

Black line the orange line is slightly coming down so if these two sectors are coming down that means the old problems are still present what were these old problems that was the fact that commodities were moving down community were moving on because growth globally was down so we see that really we do not have a big change of perception within the sector's so probably what's happening here is probably some part of short covering on the SNP itself I needs to be seen if it can be sustained as Bruno is Europe telling us anything we wish it would but it's not the case we had in the first part of the year rising relative strength of your vessels S&P and really see it's not the case anymore and it's flat even we could be a bit pessimistic by saying it's slightly moving down so here well within a small range and no signal at all so I think what we need to really realize is see this last chart of the US 10 years interest rates we know there is an announcement this afternoon and before this announcement already the ten years is taking yesterday 10 basis points on the way up which is quite a move for compared to to what has happened over the past three weeks and if this move is reaching the same kind of clouds and we know that above that cloud short-term traders tend to react to that that means they will tend to push interest rate even higher the question then is is rising interest rate long-term interest rates so good for equity and we will see maybe next time absolutely about Bruno thank you so much for coming in today and sharing your insights for those you're welcome and thank you for watching for all the latest dukascopy updates and interviews but do keep clicking back goodbye for now.