The S&P 500 rally is nearly exhausted and the index will soon see a big correction followed by six-month sideways move, independent trader Bill McLaren told CNBC Friday.
"This trend is currently in an exhaustion phase of the trend, which means it's going to be over pretty quickly," McLaren said while taking a technical look at the S&P.
"Once this leg is complete we'll get a nice, big correction and that will be the start of about a six-month sideways movement," he added.
McLaren said he thinks that there will be another thrust higher for the index's current rally, even if Friday's session is weak.
The index has resistance levels at between 1,220 and 1,225 points, between 1,247 and 1,255 points and then at 1,270 points.
- Watch the video above to see the full interview with Bill McLaren.
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