The S&P 500 could continue to push higher as investors "climb a wall of worry," said Phil Roberts from Barclays Capital.
“We’re in a very constructive technical situation,” Roberts told CNBC. “The most bearish month for equities is September, and it turned out to be a positive month. We started out [October] exactly the same way we started September—we’re trying the downside once more.”
Traders generally regard October as a bad time for markets, but Roberts said excluding 1987 and 2008, it’s actually a positive month on average.
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“So we don’t want to get too despondent this month,” he said. “It is going to be difficult near-term, but the trend is still very much in play. And while the S&P remains 1,100, we don’t have a reason to fight this move.”
On the euro/dollar, Roberts expects the trade will be well-supported as price goes down to the breakout level near $1.43-$1.44.
“We think euro/dollar is going to base and start pushing back higher again,” he said. “It’s going to struggle with the $1.48-$1.49 for most of this month and into next, but later on, I think we’re going to push beyond that and you’re going to think about moving back up to the highs we saw last year.”
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Disclosure:
No immediate information was available for Roberts or his firm.
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