Have equities turned?

The technical outlook looks to have shifted over the last two weeks. The failure to break recent highs at 1016.00 in the S&P 500 on two occasions has lead to a potential double top formation and has created a very strong resistance level. The target of this technical formation is at 957.50; coincidentally this represents daily support formed as a result of a previous double top. A break of this support would likely lead to a test of 927.25 and beyond that 865.50. A break of resistance at 1016.00 would likely surprise many market participants and could lead to another aggressive move higher with the next significant daily resistance at 1067.00.
Lest week Michigan Confidence and US Retail Sales came in below expectations and the market reaction was very telling. In recent weeks slight misses have been met by only small sell offs. Both of these figures led to concerted down moves and some panic within the price action. This weeks data releases are dominated by housing numbers and the equity markets reaction independent of the numbers will likely be very telling. If we see a muted reaction to a strong number or a sustained sell off on the back of weaker one this could well be another sign that we have reached a medium term high.
Bonds have shown ongoing strength in light of sideways equity trade and this is abnormal in light of the ongoing inverse relationship. We would suggest that bonds often can be a good indicator of future sentiment and with this in mind this could be another indicator that equities are approaching a medium term high.
(extract taken from futex)