Stephen Suttmeier: All-time Highs for the S&P in 2019?

On Tuesday, Bank of America Chief Technical Strategist  Stephen Suttmeier appeared on CNBC to give his thoughts on the current environment and what he sees for the remainder for 2019.

Stephen first notes the 2800 level, a zone that nearly all technicians are paying attention to at the moment, as it is a major resistance area. Further, he notes that he has seen some tactical "exhaustion" signals lately, as we have arrived at 2800 and have not been able to push through since. Stephen said he expects a "minor dip" back towards 2700. There is also huge support around 2600, which he doesn't rule out completely, especially if we get some bad news in regards to "macro headlines".Stephen goes on to point out that be believes we are in a "cyclical correction within a secular bull market" and that we eventually will break 2800, moving towards the previous failed breakout level of 2870. To add to this, he also thinks the all-time level for the S&P 500 (around 2930) will eventually be taken out as well.One of the keys he is using to gauge market direction is the relationship between the Industrials Sector and the S&P 500. Industrials have shown very strong outperformance lately, which he saw in 2012 and 2015 after major "bear traps". In 2012 investors were worried about Greece and in 2015 the worry spiked over China and Emerging Markets. In both of these cases, the breakdown was not sustainable.Overall, Stephen is quite bullish on the market and believes the S&P will follow the leadership that Industrials has shown so far this year.