S&P 500: The US index could still decline before a strong rally before the summer (UBS)

UBS estimates that the S&P 500 could still decline on the stock market before moving up to new highs by this summer.

"We apparently anticipated a pullback too soon, but our basic scenario for the US stock exchanges remains unchanged. We continue to anticipate a corrective pullback in Q1, before an S&P takeover of its bullish cycle to new historical highs by summer. A break below 2277 would cancel last week's break and be negative. The key support level remains at 2234. A break under 2234 would involve the 2200 level, and potentially 2150 below in the first quarter, before rising to 2400 by summer."