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BMO Strategist Finds Market Signs That “Only Develop Ahead Of Major Corrections”

As BMO chief technician Russ Visch writes in his latest Daily Action Report, yesterday was mostly a non-event as the major averages were relatively unchanged on an extremely light volume day as traders sat on their hands ahead of today’s FOMC announcement.

This means that there has been no change to Visch’s short-term timing model for North American equities which remains mostly positive, “which suggests bias should remain the upside here with targets that measure to 19,228 for the S&P/TSX Composite and 4177 for the S&P 500.”

Yet in a more ominous observation, the BMO chartist cautions that one issue that bears watching is that “the recent breakout in the S&P 500 was not confirmed by new cyclical highs in any of our market based measures of economic activity”.

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