UBS Trade Desk Says Market Toppy At SPX 2100, Don't Buy Breakout

Is the stock market toppy as it approach new highs? Key markets are looking to have downside risk as divergent correlations appear to indicate the recent rally in stocks and commodities such as oil are really a last gasp, technical analysis coming of the UBS sales trading desk suggests.

Market toppy: underlying momentum indicators diverge from SPX price action

The recent move higher in the SPX was “a low momentum breakout,” UBS trade desk analysts Michael Riesner and Marc Muller say.

The move near 2,100 in the S&P 500-based SPX appears like a drunk asking for more alcohol but in reality the market is prepared to fall on the ground...