Summarised comments from RBC on equities ahead:
While the SPX peaked at 2955 on April 29 and underwent a 6.4% correction to reach our technical target at 2800 on May 14, equities have failed to take out meaningful support in the process.
- the subsequent break above the double top at 2955 points to more gains ahead
- risk backdrop improves further
- We are raising our 1-3 month technical target to 3100 in response.
- Price action in the SPX has deviated from the 2008 bear market analog and now more closely resembles the 2009 recovery as the expansion of the Fed balance sheet benefits stocks and gold.
