Charts Predict: S&P May Rally Short-Term
The S&P 500 could rally towards 900 points and a dip in the index to between 810 and 820 would be a buy signal, Paul Daly from MIG Investments told CNBC on Tuesday.
"The stock markets are in a position to base on the current levels," Daly said.
Charts also show that other currencies were underperforming against the dollar, he added.
On the euro-dollar chart , Daly explained that the mid-1.20 levels are a good place to start going long-term to the euro. The euro is likely to rally towards the low of the $1.40 range, struggle a bit, but then continue to push new highs, he said, warning that there was a possibility that the euro could go as low as $1.16 or $1.15 before moving upwards.
When it came to precious metals, Daly said, "I like silver in the long term." He explained that silver might pull back to the 10.55 level, however if the price breaks 13.26, "we're off to the races." He currently advises to take a bit of profit," if it is available to be taken.