The recent rally in the S&P 500 seems to have reached a peak for now and could fall back toward 880 points, but after that pullback the bull market will probably be back, Roelof van den Akker, chartist at ING Wholesale Banking, told CNBC.
“Yesterday’s close below 928 is suggesting the development of a top formation, which in the S&P is pointing to a likely end of this rally,” he said.
A close below 880 points on the S&P would trigger a minor sell signal for a decline to around 810, 800 points, Akker said.
A dip to 800 points would mean the rally from March lows would have retraced around 50 percent, Akker pointed out. Once that pullback has been achieved, it could signal the start of a fresh uptrend, he said.
“Only a close below the November lows of 750 would be bearish and that would suggest that the longer-term bear market could be resumed,” he said. “But we expect the development of a higher low around 810 to 800.”
- Watch the full interview with Roelof van den Akker above.
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