It is too early to tell if the correction is over for the S&P 500, but the issue should be resolved in early Spring, says Ron Meisels at Phases & Cycles.
According to Meisels, the S&P faces two challenges: i) How will it react if and when it reaches its all-time high at 2,873 and ii) what will happen if and when the S&P breaks below its recent low at 2,647?
Meisels thinks getting through the 2,800 to 2,873 zone will be key for the bulls and the index may consolidate within the 2,650 to 2,800 zone before an attempt to a new all-time high is made. He says support comes from the two-year uptrend line and the rising 200-day moving average at around 2,575. On the downside, Meisels is concerned that a break through 2,647 may trigger a move to test the low a 2,533.
Overall – though Meisels thinks the current period is the last chance for the bears – he says the odds are increasing that the February 9 low at 2,533 is the extreme low point of this correction and a new high above 2,873 will be made.
Read the full report.