Oppenheimer: This momentum indicator suggests that the US stock rally will continue next year.

Market IntelSunday, Nov 17, 2024 8:10 pm ET

1min read

According to Oppenheimer, the monthly relative strength index (RSI) shows that the overall US equity market won't peak until 2025.

Ari Wald, a technical analyst, wrote in a report: "Momentum indicators also suggest that the risk of the market's peak in the next few months is below average."

"The median duration of the 14-month RSI of the S&P 500 between 70 and the cycle peak since 1936 is 12 months, with a median return of +19%," Wald said. "This signal was issued in late August."

"Moreover, in 18 cases, 15 (83%) were at least 6 months away from the cycle peak, and 12 (67%) rose at least 10% after the peak."

Wald recommends the best technical buy/sell combinations for each sector in the short term:

Energy: Buy Cheniere Energy (LNG.US), sell Shell (SHEL.US)

Materials: Buy CRH Cement (CRH.US), sell Dow (DOW.US)

Industries: Buy Dover (DOV.US), sell Expeditors of Washington (EXPD.US)

Non-essentials: Buy Amazon (AMZN.US), sell MGM Resorts (MGM.US)

Essentials: Buy Kroger (KR.US), sell Archer-Daniels-Midland (ADM.US)

Healthcare: Buy Stryker (SYK.US), sell IDEXX (IDXX.US)

Financials: Buy Blackstone (BX.US), sell ING (ING.US)

Real Estate: Buy Welltower (WELL.US), sell Costa (CSGP.US)

Information Technology: Buy Palo Alto Networks (PANW.US), sell Microchip Technology (MCHP.US)

Communications Services: Buy Meta (META.US), sell AES (AES.US)

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.