S&P 500 Is Riding ‘Perfect Wave’ to New Highs, Evercore Says

(Bloomberg) -- As U.S. stocks plow toward the end of summer at record highs, Evercore ISI’s top chartist sees the good times continuing to roll.

“The search for the perfect wave begins with the S&P 500,” Rich Ross, the firm’s New York-based head of technical analysis, wrote in a research note in which he raised his short-term target for the index to 3,015 from 2,975. The move came less than a month after his last increase.

S&P 500 Is Riding ‘Perfect Wave’ to New Highs, Evercore Says

He uses the performance of several exchange-traded funds, each of which is trading at a record high, to underscore a “uniquely bullish” set of factors for stocks, including:

  • Strong momentum
    • MTUM US up 14% year-to-date
  • High quality
    • QUAL US up 7.9% this year
  • Low volatility
    • USMV US up 7% in 2018
  • A swell of value and size
    • VLUE US up 6% year-to-date
    • SIZE US up 5.5% this year

“I would look to make tactical sales on an explosive move into 2,975-3,000 and then buy those sales back for a rip into the finish,” Ross says.

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