A minor pullback is likely for US equities in the first half of December, says Ron Meisels at Phases & Cycles, but he says a year-end rally should take the major indices to new all-time highs thereafter.
As such, Meisels sees strong buying opportunities for equities over the next two weeks, especially as he expects the markets to stay strong through the beginning of 2017.
According to Meisels, the current bullish move, which started in November, is a new up leg within a larger Leg-5 of the bull market (which started from the S&P low in February).
However, Meisels says the Leg-5 is already showing it characteristic narrowing leadership – the number of stocks making new 52-week highs is declining. As such, he says few stocks will participate in Leg-5 and stock selection is therefore crucial.
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