The upward trend in the S&P 500 is likely to continue and will peak in March, after which investors will turn more bearish, independent trader Bill McLaren told CNBC on Friday.
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“We clearly have an exhaustion of some sort on the chart and that does represent some risk. But the move down since then has been 22-¾ points in four days which keeps the trend intact,” McLaren said.
“We could have another little shot up…If we do get a kick up, it will die at 1,235 or 1,247 (points),” he said.
McLaren said insiders are selling at a rate he has not seen before, with hardly any insider buying.
But despite this risk, he still sees a continuation of the upward trend.
“I still like March for the end of the bull campaign with some risk at the end of November or the first week in January at 100 days from low,” he said.
The trend in 30-year US Treasury bonds on the other hand was down, McLaren said.