S&P 500 to break out to “new all-time highs”

Stocks fell last week. The S&P 500 fell 0.3 percent, its third consecutive weekly decline. The STOXX Europe 600 fell 3.0 percent.

Oil also fell. West Texas Intermediate crude fell 5.5 percent, its biggest weekly decline since the week ended 19 July. Brent fell 4.4 percent.

However, BTIG strategist Julian Emanuel thinks that stocks will resume rallying in the fourth quarter.

“Similar to 1998, where stocks rallied for 18 months (advancing 68%) from the cyclical low to the point of maximum public bullishness, the 3/2000 ‘Tech Bubble Top,’” Emanuel was quoted by MarketWatch as saying, “we expect the current four-month S&P 500 trading range to resolve with new all-time highs as the prospect of higher interest rates... results in fund flows to stocks and the public’s eventual embracing of the ‘most hated bull market of all-time.’”