The Greatest Bull Market in Decades, But a Correction First

Key Points:

• The current bull market, lasting 17 years with a 1,073% gain, is an extreme outlier compared to historical averages, signaling caution but not an immediate end to the secular uptrend.
• Elliott Wave analysis suggests the market is in an ending diagonal pattern, indicating the bull market will continue with sharp corrections before potentially reaching S&P 500 levels of 9,000–10,000 by late 2027 or early 2028.
• AI-related sectors, including memory, networking, and energy stocks, show strong technical setups pointing to multi-year secular uptrends, despite short-term volatility and corrections.
• Short-term risk management highlights a likely correction in the S&P 500 to the 7,300–6,683 range before resuming the uptrend, with semiconductor ETF SMH signaling potential downside risks unless key resistance levels are broken.
• The report concludes that the secular bull market driven by AI investment and U.S. economic strength has 1-3 years to run, but investors should be prepared for volatility and use dips as buying opportunities, particularly in lesser-known AI stocks.