Oppenheimer Asset Management chief market technician Carter Worth said he believes the stock market's latest pull back is ending, and he is buying at these levels.
He said the S&P 500 and other important global equities indices hit their 150-day moving averages and are hanging near those levels. The S&P closed at 1286 Monday, just below the 1288 150-day level. It finished Tuesday at 1285, around that level.
"I'm buying. This is an important intermediate decline in which the S and P and important global indices held a level of support, and you have to act accordingly—buy," he said.
Worth said he expects to see a confirming bounce. Some of the other indices he watches include the Russell 2000, the S&P 400, and the MSCI EAFE. The EAFE was at 1705 Tuesday, above the 150-day level of 1690.
"The longer you stay down without bouncing, the more the indications are that you're not going to bounce," he said. But he does expect to see the market bounce back.
Some market technicians, however, still see trouble ahead. WJB's John Roque Monday said the S&P could be heading to 1250 or lower.
Worth, in a note, provided an interesting chart about the S&P at 1300, a level it slipped below Monday. The chart shows prices of other asset classes, like gold and oil; interest rate levels and price-to-earning ratios at different points in time when the S&P was at 1300.
His chart is below:
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