US equities should enjoy another major bullish period in 2018 though they are likely to face a minor pullback in December or a more significant one in early 2018, says Ron Meisels at Phases & Cycles.
In his assessment of 2017, Meisels makes the point that the S&P 500 has seen a relentless rise (of over 17 percent) punctuated by minor pullbacks and that it now looks a little stretched and vulnerable. The index is currently approaching the top of its trend channel with a major overhead resistance at around 2,670 and he thinks its three-month advance may be nearing its end. However, Meisels says only a pullback of more than 7% (below 2,450) would damage the S&P 500’s very bullish chart and he does not expect this to happen.
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