A pair of charts suggests stocks will stage a significant rally, no matter what happens with the midterm elections.
“You can see that as prices move lower, the momentum starts to trend higher, and ultimately that tells us that the correction is now getting long in the tooth,” he added. “We’re looking for a rebound to develop, and that’s what we see happening right now.”
His analysis came as S&P 500 tries to lock in its fifth positive session in six. The S&P, which fell almost 7 percent in October, is up more than 2 percent in the last week.
“The general idea for now: The curve is not inverted yet, so we’ll treat the pullback as a late-cycle correction and not the start of a bear market,” Hunter said.