S&P 500: Expect new highs

The S&P 500 should make new highs in the coming weeks to months, according to Ari Wald, Technical Analyst at Oppenheimer.

Wald says that the relative relationship between the equal-weighted S&P 500 (which emphasises smaller stocks) is coming off a new cycle high (in favour of the equal weighted index) and shows that underlying leadership in the S&P 500 is stronger than the headline index would suggest.

Wald sees this, along with returning Russell 2000 strength, as another piece of evidence that argues for new S&P 500 highs in the coming weeks to months.

See chart.