Stephen Suttmeier, a technical strategist at Bank of America Corporation, believes that the bull market in US stocks, which began in 2013, is entering its 10th year, and this upward trend is likely to continue until 2027. This optimistic view stands in stark contrast to its pessimistic Wall Street counterparts.

The bull market that began in 1980 lasted into 2000 (20 years), the bull market that began in 1950 continued into 1966 (16 years), and the bull market that began in 2013 is expected to continue on the basis of previous bull markets, Suttmeier said.

The long bull market of 1950-66 began with low interest rates, as it does now, until 10-year rates hit 5 per cent, according to Suttmeier.

Suttmeier says the long-term cycle of US 10-year Treasury yields is much longer than that of the S & P 500. During the bond bull market of 1920-45 (yields fell), the stock market experienced a bull market and then a bear market. During the bond bear market (rising yields) of 1945-1981, the stock market also experienced bull and bear markets. During the bond bull market of 1981-2020, stocks experienced the first seven years of a bull market, a bear market and another bull market.

Suttmeier said the 2020 correction marked "half the time" of the current bull market and suggested that the upward trend could continue until 2027. This year, the S & P 500 has resistance at 5000 and support at 4800.

But cyclical bear markets put pressure on the long-term bull market. On Friday, the S & P 500 successfully held its downside test level of 3800. The 200-week moving average of 3475 is also a major test point.

Unlike the optimistic Suttmeier, Morgan Stanley strategist Mike Wilson believes that the bear market rebound has begun, and the decline in US stocks is not over yet. Wilson expects the S & P 500 to close at 3400 by the end of the year.

In addition, Goldman Sachs Group said the recession would push the S & P to 3600.