Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Raymond (NSE:RYMD) James has issued a warning that a new short-term corrective phase in the equity markets is underway, expected to last one to three weeks. The warning comes as the Russell 2000 trades at 2,218.42, up 6.61% over the past year but down 0.53% year-to-date, suggesting mixed signals in small-cap stocks.
The firm notes that new daily mechanical sell signals remain in place on the S&P 500, Nasdaq 100, and Russell 2000 indices, indicating a deteriorating technical picture for major market benchmarks.
Four developing technical negatives suggest that the reward/risk ratio at current levels is poor, according to Raymond James, which believes an intermediate-term correction lasting one to three months is attempting to take hold.
Despite the near-term caution, Raymond James views the potential intermediate-term correction as an opportunity to add exposure, particularly to leadership within more cyclically oriented areas of the market, as their longer-term cycle work strongly suggests a new 4-Year Cycle is underway.
This new 4-Year Cycle should have upside potential extending into the second half of 2027 or first half of 2028, according to the firm’s July 3, 2025 technical perspectives report titled "Welcome To Phase 1 - Adding Cyclical Equity Exposure As New 4-Year Cycle Takes Hold."
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