Despite a relatively strong rally the US stock market is still in a bearish mood, Chris Locke from Oystertrade.com Management said.
"I still see this as a bear market rally into the summer," Locke said.
"The S&P is seeing a nice rally on the back of financials and other stocks from the beginning of March," he added.
"We've come just over the 800 level, which suggests that there is further correction towards the upside. The market will still go through a period of stability from April to the summer months," he added.
However, the US market has been beaten up over the past couple days, with the S&P closing just over 815 on Tuesday.
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"We may be in a setback here. We are back towards the 800 level, we can hold that, or if we break it we'll come back to 870 or just below. There is a chance we can see another swing up, but I still feel this is a bear market rally," Locke said.
Another area that has taken a beating over the past several weeks has been gold. He uses an S&P to gold ratio to provide an outlook.
"This is a long-term market," he said. "We are just at the beginning of a long-term bull market where this ratio on gold will return back to the 3.5 to 5.5 (currently close to 1) times the value of the S&P index," he concluded.
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