While everyone expected traders to pack away their laptops and head to the beach at the end of May, we’ve instead seen the unexpected, with stocks continuing to push higher (although at low volumes), bears be damned.
With the S&P 500 (^GSPC) closing at another all-time time, investors and Wall Street pros are wondering how they will position themselves for the coming summer months ahead, including a fall midterm election.
In the attached video, Jeff Saut of Raymond James says the trend higher will continue. A few weeks ago the market performed what technicians are calling an “upside-downside reversal,” he says, which occurred around 1,820 on the S&P 500. Saut’s team saw it as a positive sign, and they’ve been bullish ever since.
At this point, Saut’s watching the 1,950 to 1,975 levels on the S&P as his near-term targets. Saut’s staying bullish because he believes the secular bull market is still intact. “In secular bull markets,” Saut says, “surprises tend to come on the upside.”
Saut points out what’s pushing stocks higher is a multitude of factors, such as acrimony subsiding in Washington, a steadily improving economy, and companies getting accustomed to Obamacare. “All the equity markets care about are whether things are getting better or worse. And things are getting better.”
Saut notes he isn’t alone. Longtime strategist Richard Bernstein claims we are in the midst of a secular bull market that will rival the massive one investors saw back in during the stretch of 1982 – 2000.
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