We all know the old saying 'what goes up must come down', but will the S&P 500 obey the laws of gravity? Serge Berger gives us his analysis of the US stock market after the S&P 500 blasted off to an all-time high of 2000. He argues that the S&P 500 has been in a five year bull market but that we are entering a "seasonally weak period" and traders could think about taking "some chips off the table".

 

After the surge in US stocks, there’s a sense of where are we now? So what’s the best strategy? Serge notes "surprising strength in the financial sector" which cannot be ignored because financials underpin much of the market but he also sees weakness in transportation stocks, for example, which has the potential to bring the market down.

So what are his suggested strategies? He sees two possible outcomes: consolidation and another surge up to 2010 or 2020 or a 'pop and drop' scenario; where the market hits another high before a negative newsflash triggers an excuse to sell off.