katie stockton. next, we'll tackle bp shares sliding here in london by about 4% down. multibillion dollar off as a transition their company to net zero emissions. we will break it down. this is bloomberg. ♪ alix: happy monday. this is bloomberg markets. a stock you want to pay attention to today is bp. writing off as much of $17.5 billion from its assets and lowering long-term price assumptions as the coronavirus hits global demand. also as the price of carbon rallies about $200 per ton. we're joined from jeffries with the $320 priceon target. what was your take away? can you hear me? it looks like we are having difficulty getting him back. we will speak to him in a second. what is interesting is we can talk about long-term demand but it is also bp is rethinking how much carbon will cost, the shift over the next two decades. guy: i have read a ton of stuff on this today and there is a line coming with analysts. there is concerned bp is seeming optimistic. they should have hit this even harder and taken a more -- ciccone and approach. you wonder why the company was so p

last week's stomach churning selloff it's only 7.5% away from its record stocks march higher, katie stocktont do the charts tell you about s&p, resilience, strength to move higher or where the support is if it moves lower. >> the uptrend, of course, has strong intermediate. in the past week or so we've seen a distinct loss of short-term momentum and that tells us we have downside risk in the term. north-term not yet within reach for s&p 500 but we have already seen some relief from short-term overbought conditions. that's constructive, tells us last week while harrowing, it was somewhat healthy from an intermediate term perspective. we're looking for a pullback or retest of support around 2955 for the s&p 500. if that level does not hold, secondary support is around 2800 that's based on a confluence of different factors from a technical perspective. so that seems somewhat higher probability as a downside target for pullback we would see a pullback as something that may provide opportunity to add exposure to take advantage of that strong intermediate term momentum and ultimately a test of the

week that she saw sell signals in the market, no at bad call here, teaks are signaling next, katie stockton like yesterday or a big scary pull back like yesterday that rings out some of the bullishness or complacency and you're still having s&p above 3,000. maybe that's the way things are supposed to work in an uptrend maybe not. what are the technicals telling you? >> well, we did come into this week with a gap up on the s&p 500 and sometimes after prolonged up moves when you see these gaps on the chart they tend to be exhaustive. that's what we were looking at of course, there is an overbought extreme, nobody would argue against that, however, sometimes those overbought extremes can be a good thing, i would argue that this one is good but just not in the short term intermediate term, we've seen intermediate momentum improve, long term momentum neutral as of yesterday the market does have some excesses built into it and that decline left what we call as technicians an island reversal on the chart and that supports another couple weeks of a pullback we had initial support right around 2955

joining me right now is fair leaf managing partner, katie stockton. great to see you this morning.kes me back, where every day we came in and there was another tidbit about the china deal and markets were moving on it. are we going to go back to that? obviously the relationship between the u.s. and china has changed. >> well, there's definitely a real skittishness to the market right now. i see it as characteristic of a consolidation phase. you have this tug of war between buyers and sellers and what some of the indicators that we use are really designed to eliminate this kind of noise. we saw earlier this month a very subtle loss of short-term momentum ahead of the big gap down ahea aof as&p 500 index. we're seeing a heightened vol volatility and consolidation phase that reflects the loss of short-term momentum. it will keep hold another few weeks as the market digests the rally it saw after the marlo and in the big scheme of things it's probably going to be healthy. maria: i want to ask you about where we are in markets right now because i know that fang stocks, that's facebook,

last week we had katie stockton on, a technician on friday she said while she pointed out that short, saw that 17, 1800 points, sometimes that's characteristic of a continuing up trend but she said more work needed to be done. she thought that could be below 2800 but that still leaves another 200 points theoretically. >> reporter: the way it looks to be opening today, it would get it to back to where it was on memorial day 3232 was the high. easy to remember now all you've done is skim away the last few weeks of up side push so i do think that makes sense the power of the rally, unprecedented over 50 days in terms of the magnitude of it, the persistence of it. a lot of the technical breadth readings people are giving the market the benefit of that doubt. historically if you look months out, that tends to have good implications in the short term, even if you look at the massive rallies off of very, very important lows like in march of '09 or 1982, we were ahead of those. therefore, you are kind of overdue for something. at the same time i think we got to a point where one of the most b