The stock market will likely return to its multi-year bear pattern on Oct. 16 after have a key reversal day late last month, Richard Suttmeier, chief market strategist at Valuengine.com, said on CNBC Monday.
“This bear-market rally we’ve had since March is coming to the end,” Suttmeier said.
There was a key reversal day in the market on Sept. 23 and on Oct. 16 that pattern will start to show up on the weekly charts and confirm the return to the multi-bear market, he said.
For a bull market to happen, stocks have to be cheaper, Suttmeier said.
Stocks were “ultra-cheap” on March 6, but now five out of nine sectors are overvalued and “we have to alleviate the overbought conditions,” he said.