Charts Predict: S&P Faces 'Scary' Correction
The S&P 500 should rise until September 5, but it faces a "scary" correction after that, Bill McLaren, independent trader, told CNBC Friday.
“This is a very powerful cycle, the vibrations have been very strong for this so I would expect a correction that’s going to look scary if we run up into it,” McLaren said.
Even though McLaren highlights the risks of a correction, he said there was upside potential in the short and medium term for the US stock index.
“There’s more time to run for this leg, and also on an intermediate-term basis there’s much more time to run,” McLaren said.
The S&P closed at 1,031 points at Thursday’s close having added to recent gains that have pushed the benchmark index above the 1,000-point barrier.
Watch the video above to see where McLaren thinks the dollar index is headed.
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