Lisa Cook sues Trump over firing attempt, emergency hearing set
Oppenheimer technical analysts remain bullish on the U.S. stock market but acknowledge the risk that equities may correct lower in the near term.
“We reiterate the risk of a seasonal correction, and the longer term positives that indicate such a setback should prove an opportunity to purchase a bull cycle in its middle innings,” the analysts said in a client note.
They are closely watching the S&P 500 technical developments as history suggests the index may bottom in late August.
“We want to stress that the market is behaving in a manner consistent with a trend that should continue—specifically, a pullback in an uptrend, and not a major top,” the analysts added.
Oppenheimer analysts see the chance of a pullback extending to 4200-4400 and believe the S&P 500 “becomes increasingly attractive toward 4,300.”
“We’ll also be watching for a daily RSI reading below 40 as a tactical buy signal,” they concluded.
S&P 500 closed at 4478.03 on Friday.