Nasdaq, S&P500: JP Morgan see a greater chance of a pullback – last week not enough

<p>JP Morgan's Market Intel team are giving a 40% chance to the US stock market pulling back before resuming its trend higher. Up from their previous 35% probability. </p><p>JPM say that last week's fall does not constitute the pullback they are looking for, but concede they were looking for a bigger pullback in June before indexes rocketed higher. </p><p>In June JPM were looking for a deeper pullback citing:</p><ul><li> less rosy macro data</li><li>the continuation of the tightening cycle</li><li>earnings outlook</li><li>and lack of incremental buyers</li></ul><p>The analysts say that the first and second of those points above are most similar to now:</p><ul><li>With bottom’s-up earnings estimated higher in the medium term and buyback poised to turn back on, bullets (i) and (ii) would be the key similarities with the addition of positioning</li></ul><p>I haven't got targets to the downside JPM is looking for. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.