S&P Chief Technician Sees Bull Run

The S&P 500 is entering the second leg of the bull market that started in March 2009, according to Mark Arbeter, chief technical strategist at S&P Equity Research Services, as reported in Oct 13, Outlook. The index has traced out a higher high and a higher low, which is the technical definition of an uptrend. Here are the other bullish technical indicators that Arbeter sees: The intermediate trend for the S&P 500 has turned to bullish from neutral, says Arbeter, who points out that it has broken out from an inverse head-and-shoulders formation. Arbeter, sees market internals remaining strong, and technical patterns indicating up trends. He points out that the NYSE advance/decline line recently hit another all time high, and up-versus-down volume on both the NYSE and the NASDAQ shows healthy levels. The leaders of the first phase of the bull market are leading the market higher once again, which is another positive, according to Arbeter. Daily price momentum also remains in an uptrend and has not yet cycled into overbought territory. Arbeter thinks that the S&P 500 could see a move to just above the April bull market highs. With a strong finish for the week ending September 24, the index took out resistance at the 61.8% retracement level of the April to July correction. ■