JEFF SAUT: Prepare Yourself For S&P 1500

jeff saut

Here’s the latest call for Raymond James’ Jeff Saut:

The call for this week: The S&P 500 Total Return Index (&SPXT/2469.00) is trying to break out to new all-time highs, as can be seen in the chart on the next page.

It may also be pointing the way for the S&P 500 because if the SPX can decisively break out above its April highs of 1420 – 1422 it potentially brings into view targets above 1500. And while it is doubtful the SPX can breakout above those “highs” on its first try, I think it will indeed eventually break out. Of course, the grind higher from the June 4th low has been accompanied by total disbelief among individual and professional investors.

That is reflected not only in the flow of funds by individual investors out of equity-centric mutual funds, but in the latest Commitment of Traders report that shows the “pros” have been caught heavily on the short side into a rising equity market. So the fuse is burning and I think it is just a matter of time until the SPX travels above 1422.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.