(Bloomberg) -- While the S&P 500 may have just rallied back to a record, price patterns at the top make predicting its next move even harder than it usually is, according to Evercore ISI’s top chartist.
After jumping as much as 1.2%, the benchmark for U.S. equities ended Monday’s session with a 0.8% gain at 2,964. While the late-day pullback was consistent with short-term profit taking after last month’s rally, the reversal wasn’t big enough to indicate a collapse is imminent, Rich Ross, the firm’s head of technical analysis, said in a post-market research note.
“At the same time, the breakout was not the most definitive either, leaving the S&P in a technical purgatory of sorts whereby a slightly more decisive breakout would set the stage for a run at 3,020-40 with measured upside to 3,150,” Ross said. “Conversely a failure at an all-time high would leave us uniquely vulnerable.”
In the meantime, equity bulls are in control in the U.S., Europe and emerging markets and selling pressure remains weak, he said.
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