Market momentum is slowing but it’s clearly still upward, said John Wilson, chief technical strategist at Morgan Keegan.
“We’ll get a correction somewhere but it won’t happen when everyone is looking for it,” Wilson told CNBC. “I think there are a lot of institutional investors who are sitting on too much cash right now.”
He expects the correction to happen in the summer, but markets won’t test the March lows.
Markets are "forecasting the end of a recession," he said. "They’re looking through the trough and we’re getting a little concerned because we’ve run up here pretty quickly and we’re seeing data consistent with that…So the wall of worry is still there.”
Wilson said it's likely that the markets will reach 1,000 on the S&P.
“Technology is acting great,” he said. “One by one, we’re seeing the major indexes put on the Golden Cross. I’d like to see the markets consolidate a little without major correction.”
No immediate information was available for Wilson or his firm.
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