CNBC Stock Blog

Charts: Look for S&P 500 Support at 1,132

The S&P 500 will fall toward 1,132 points in the next two or three sessions and then start a "large sideways movement," Bill McLaren, independent trader, told CNBC Friday.

Charts: S&P to Dip Before Sideways Move
Charts: S&P to Dip Before Sideways Move

"We're going to see a two or three day move down, if not starting now it will be early next week. We can look for support at 1,132 (points)," McLaren said.

The S&P will then recover the dip and begin "a large sideways movement," he said.

"The dominant cycle now is a five-year bear cycle that started in 2007 after the 2007 high," he said. 

In the next six months the high of 1,220 points and the low of 1,060 points will both be tested, according to McLaren.

The overall bear trend will last one and half to two years, he added.

- Watch the full interview with Bill McLaren above.

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