Stocks less vulnerable to steep drop because they just crossed a key level, JP Morgan finds

J.P. Morgan Chase’s Jason Hunter doesn’t think stocks are out of the woods.

But the firm’s head of global fixed income and U.S. equity technical strategy believes they’re less vulnerable to another steep drop. According to Hunter, the S&P 500’s close above 2,800 on Tuesday provides a floor.

It’s a level he highlighted in a chart of the S&P 500’s daily closes on CNBC’s “Futures Now. “

“The 2,800 number — that’s a key level. That’s where the market broke down from. Not just from the March through May pattern. But also if you go back, it was the upper end of the range from the fourth quarter,” Hunter said Tuesday.

That level may help provide stability, but Hunter warns 10-year Treasury yields have created “extreme” technical conditions that could signal more trouble for the broader…

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