Harry Dent, of HS Dent Investments, issued a Forecast Update to subscribers this morning. HS Dent is closely watching market moves, as we are nearing a turning point. Some analysts suggest that we may see a continued correction that may bring the S&P 500 level down to as low as 800 – 810 if the S&P can significantly break under the 880 resistance area. Mr. Dent, on the otherhand, believes we may be reaching a turning point in the correction, with an upswing to follow. No buy signal has been issued as of yet.
We continue to advise patience as we are likely approaching a second buy signal in stocks. Our oscillators are getting more oversold, but still not as low as we would like. The Dow broke support at 8,225 and now the next targets are around 7,950 and 7,800. If we don’t see a stronger turnaround today, stocks are likely heading a bit lower.
Harry Dent has previously forecast that oil would correct from the $70 level into the low 50’s, and this forecast is still intact. The next move for oil, according to Dent, would be a powerful move to the upside, breaking through the $100 mark and rising as high as $140. For now, watching and waiting is in order. A move into oil should not be made until the up-trend move is confirmed.