Market timer McClellan to turn neutral on stocks from bullish at the close

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Market timer Tom McClellan, publisher of the McClellan Market Report, said he will move to neutral from bullish for short- and intermediate-term trading styles at Tuesday’s close, as he expects the S&P 500 to suffer some weakness over the next week. McClellan, who swung to bullish for all trading styles from bearish after the S&P 500 closed at 3,363.00 last Wednesday, said the index has been correlating “very strongly” to the Presidential Cycle Pattern (PCP) since the COVID-19-induced selloff in March. The PCP suggests a market top on Oct. 7, but McClellan said the S&P 500’s recent turns have come about one day earlier than the PCP chart suggests. He said the S&P 500 is then set up to see weakness, potentially as much as to test the September lows, with a bottom ideally due on Oct. 15. The Sept. 23 closing low of 3,236.92 is about 5% below current levels.
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