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Fundstrat’s Head of Technical Strategy Mark Newton believes stocks are primed for a pullback this month.
In a new interview with Fox Business, Newton says the S&P 500 will likely hit a local low in November.
“I think it’s going to be resistance into November. We can’t get under 6,550, the early October lows.
If that happens, then that would cause a larger sell-off. I don’t think that’s going to happen…
It’s going to stay at 6,550 at the bottom of that channel. That’s really the key thing.”
Newton is known for accurately predicting a major bearish turn for markets back in late 2021.
This time around, he views the incoming dip as temporary and driven by factors like narrowing market breadth, overbought tech signals and seasonal cycles, not the start of a larger decline.
Newton remains bullish overall, expecting the index to recover strongly into December and January.
Meanwhile, Fundstrat’s head of research Tom Lee says he expects some choppiness at the start of this month, but believes the S&P 500 will finish November with a 200 to 250 point gain at around 7,000.
