All-time highs are 2 weeks away: BofAML technician
MacNeil Curry, the head of global technical strategy at Bank of America Merrill Lynch, says that historic highs in the stock market are just around the corner.
"For all-time highs in the S&P it's probably not that far away—I'd say probably a couple of weeks on the outside," Curry said on Tuesday's episode of "Futures Now." "Seasonals start to get much more constructive once we get past February and we're already almost through February, we've got a week and a half. So I'd say probably two weeks or so with regard to higher S&P."
The index's current all-time intraday high is 1,850.84, which it touched on Jan. 15. (The S&P also made its all-time closing high, 1,848.38, on the same day.) With the S&P currently trading at 1,841, those levels are just a hair's breadth away.
Yet Curry was bearish on the S&P 500 until Friday, when the market's strength told him he was wrong.
"We were pretty bearish a couple of weeks ago for a whole host of reasons," including market breadth, the price action from the 1,850 high and seasonal trends, he said.
"But the fact of the matter is the price action said we were wrong. We broke through some pretty decent resistance. ... It said to us that our analysis was wrong and that the correction had run its course, and that the larger uptrend had proven to be far more resilient than we anticipated," Curry said.
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Above 1,850, Curry's next key level for the S&P is 1,872. After that, "we think you could see a push up to, say, 1,904, 1,924."
Still, not everyone likes the idea of turning bullish as the market approaches its historic high.
"Does it matter to you that we're in spitting distance, but below those all-time highs?" Jim Iuorio asked Curry. "Wouldn't it have been a better idea to wait to settle above those [levels]? ... That seemed like a decent resistance point, if we are going to bounce back up, in terms of a correction. And it just seemed worth it to go another percent before you just seem like you're chasing price after 6 percent" worth of gains from the market's recent bottom.
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"Those levels are only likely to be fairly temporary," Curry said.
And like a true technician, he added: "Unfortunately, sometimes it looks like you are chasing price. But when the analysis changes, you change with it."