One chart specialist thinks the technical signs point to a rate-cut rally ahead.
Greg Troccoli of Opalesque Technical Research told Fast Money that, despite recent volatility, a chart of the S&P 500 shows a bullish trend. As long as the S&P posts a monthly settlement below 1390, Troccoli thinks it will keep a bear market at bay.
As for the financials, Troccoli said an old support line might now be acting as a resistance level. The banks have corrected more than the S&P but they still aren’t out of the woods entirely, he said.
Troccoli also said, based on a chart of the Philadelphia Stock Exchange Housing Index, that the housing sector might finally be stabilizing. The index has fallen to its lowest level since 2002 and he thinks a rebound could be at hand.