With the S&P rising about 3% this month should you bet that the march higher continues? Or is a correction starting?
Seems like a good time to check the charts.
Strategas Research Partners head of technical analysis Chris Verrone tells the desk that we may see some near term selling but there’s considerable S&P support between 1280 and 1260.
”We’re telling clients there’s probably a pretty attractive buying opportunity not too far down the road,” he says.
Verrone also tells us that the uptrend off the March lows appears to remain very much in tact.
“When the advance/decline makes new highs and when leadership is as cyclical as it has been - industrials, energy and technology names – that keeps us a flat out buyer of weakness.”
If broad market bets aren't your cup of tea, there's more.
Verrone also presented a few single stock stories.
”It’s all about energy,” Verrone says. “I would highlight Chesapeake in particular. We’re seeing an impressive bearish to bullish transition underway.”
He also likes Devon and Williams . “It’s a very similar story," he says. "Both stocks are breaking out on good volume."