S&P: Bear market insufficiently confirmed

Until there is significantly more confirming evidence that a new bear market is underway, Ron Meisels, President of independent research house Phases & Cycles, believes the S&P 500 is in a choppy wave 4 correction of a bull market.

Meisels says, “The current battle between bulls and bears does have a silver lining – the boundaries of the playing field and the rules for declaring victory are now very clear for both sides.” Specifically, he thinks bullish confidence will return if the S&P 500 can make new highs above 2,135 (the high of the spring/summer period), whereas the bears will dominate if the 1,867 level (the low of August 24 & 25) is taken out conclusively and even more so if the low 1,800s and 1,700s (the major 2009-15 bull market trendline) are taken out.

Read the full report.