S&P 500 may gap lower – BBH

The sharp pre-weekend losses and poor close (just above the 200-day moving average and near session lows) will weigh likely weigh on Asian and European markets at the start of the new week, according to analysts at BBH. 

Key Quotes

“The S&P 500 may gap lower. The earnings reporting season kicks off proper on April 18 with Alcoa, and the main economic data is the CPI, where the core may resurface above 2.0% for the first time in a year. This means that there is little to distract investors from the deteriorating technical condition.  A break of 2585 likely signals a retest on the mid-February low a little below 2533.”