Traders work on the floor of the New York Stock Exchange (NYSE)Spencer Platt\/Getty Images<\/p>\n
The current uptrend in stock prices is more than a typical bear market rally, according to Fundstrat.<\/p>\n
The S&P 500 has surged nearly 10% from its June low, and Fundstrat expects the index to touch 4,000 by Friday.<\/p>\n
\"This should signify the start of some upward progress for markets into September,\" Fundstrat said.<\/p>\n
The current rise in stock prices is not a typical bear market rally and instead has room to run for a couple months, Fundstrat technical analyst Mark Newton said in a note on Wednesday.<\/p>\n
The S&P 500 is up nearly 10% from its June low of around 3,600, and Newton expects the index to test the 4,000 level by the end of this week. On Thursday, the S&P 500 hit a high of 3,987. From there, Newton expects some sideways consolidation before the stock market continues its move higher.<\/p>\n
The S&P 500 \"is knocking on the door of 4000, and while many indices look to be nearing initial resistance, I remain convinced that this week should not be just a bear market bounce,\" he said. \"This rather should signify the start of some upward progress for markets into September.\"<\/p>\n
A sustained rally in stocks through the start of September would be a welcome sign for investors, as it's been nothing but a steady decline lower since the start of the year, with several rallies in January, March, and May all giving way to more selling pressure.<\/p>\n
Adding to Newton's conviction is the fact that overall breadth, or participation among individual stocks, has seen improvement more recently.<\/p>\n
\"The last few days have represented some of the most broad-based rallies that we've seen in recent months and have helped to add some conviction at a time when many remain skeptical,\" he said, highlighting that the percentage of S&P 500 stocks that are trading above their 50-day moving average recently broke above multi-month resistance.<\/p>\n
Newton expects the S&P 500 to face some resistance just above current levels at around 4,000, with the potential for small declines that could materialize next week during a busy week of high-profile earnings and the Fed's July meeting. But any decline will ultimately represent buying opportunities for those that missed the rally off of the June low, he said.<\/p>\n
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The current rise in stock prices is more than a bear market rally and could last into September, Fundstrat says - Yahoo Finance<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Traders work on the floor of the New York Stock Exchange (NYSE)Spencer Platt\/Getty Images The current uptrend in stock prices is more than a typical bear market rally, according to Fundstrat. The S&P 500 has surged nearly 10% from its June low, and Fundstrat expects the index to touch 4,000 by Friday. Continue reading