The US equity markets are clearly not yet ready to make a convincing break to the upside, says Ron Meisels, President of independent research house Phases & Cycles.
While the S&P 500 continues to probe, but fails to breach, overhead resistance around the low 2,100s, Meisels still believes the longer-term upside potential for this bull market is ‘tantalizing’ and that, looking forward, the current sideways price action will go on to provide a supportive base for the bulls.
In the meantime, however, Meisels says the S&P 500 must deal with some more short-term selling pressure, with a final pullback towards 2,025 and the 200 day Moving Average. Once this happens and the market becomes ‘truly oversold’, Meisels then thinks a summary rally to new bull market highs should unfold.
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