Despite the fact that many experts have called for a correction in North American equity markets, the S&P/TSX composite index, Dow Jones Industrial Average and S&P 500 continue to surge ahead.
Ron Meisels of North American Marketletter points out that while recent pullbacks have been treated as buying opportunities, there is now some technical weakness in what he considers an aging bull market.
“The longer the correction is delayed, the less time there will likely be for a significant rally,” he said in a report.
If the multi-week correction he anticipates in February doesn’t arrive soon, then Mr. Meisels thinks this bull market could end with a “disorderly bang.”
However, he thinks a less severe correction is more likely, which could be followed by what he calls the “last rally of the 2002-2007 bull market.”