MKM Technician Has Three Times As Many Short Vs. Long Ideas Heading Into '16

• Shares of MGM Resorts International MGM, Panera Bread Co PNRA and Wendys Co WEN have all headed north over the last three months.
• MKM Partners’ Jonathan Krinsky mentioned that of the 77 global indices across developed and emerging markets outside the US, only 14 are above their 200 DMAs and merely 8 have made a new 52-week high post August.

The SPX gained 2.76 percent in the last couple of days, albeit with very light volumes, analyst Jonathan Krinsky noted. He believes that although Santa Claus Rally is expected to get into full swing this week, some of the expected gains have already been pulled forward as evident in the large move over the last few days.

“Further, with 87% of SPX components above their 10 DMA, a pause this week should not be surprising,” Krinsky mentioned. He added that a study of 77 global indices across the developed and emerging markets revealed that only 14 are above their 200 DMAs in local currency terms, while merely 8 had made a new 52-week high after August.

“Just as the U.S. markets need better breadth to sustain an advance, so too does the rest of the world,” Krinsky pointed out.

While Casino companies are trending downtrends, MGM Resorts International is the closest to reversing that trend. Krinsky added that while many charts in the restaurant space remained in firm downtrends, Panera Bread and Wendy’s appear to be bucking the trend.