A perennial bull supports his firms technical analyst
Tom Lee - a forever bull - analyst is on CNBC in support of his firms technical analysis, Mark Newton, who believes the S&P index might be near a peek at the end of this week, and now says that this could result in "some consolidation which could retraced 38 250% of the move up from October before markets can push higher in December."
What does not translate to in terms of price action?
Looking at the S&P index, the move up from the October low as the 38.2% retracement at 4550.59 (the current price is 4694.50). The 50% is at 4498.72. A move down to the 50% retracement would equate to a -4.66% decline from the all-time high reached in November.
He cites fundamentally
- Macro uncertainty regard to potential new Fed chair. He thinks if it happens the market will test a potential new chair
- Covid cases are rising (4th wave) and could see a rotation into defensive shares as a result
Lee has been bullish FOREVER. He cited a few weeks ago that he sees 4800 and would not be surprised to see 5000 by the year end.
The S&P index is currently trading down -7.59 points or -0.16% at 4693.14. The NASDAQ index was higher before his comments but now is trading -13.52 points or -0.08% 15960.07. It moved down from the high of 15998.57.
Biden is expected to announce his decision on whether Powell stays on, or does Lael Brainard take over the chair seat. ALthough Brainard is just as dovish as Powell, she is thought to be more inclined to look toward more regulation.
