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Desmond Sees Stocks at ‘Late Stage’ of Rally: Technical Analysis

U.S. stocks are at the “late stage” of a bull market and the Standard & Poor’s 500 Index may plunge at least 35 percent starting next year, according to Paul Desmond, president of Lowry Research Corp.

A bull market on average lasts about 37 months, meaning the current 28-month advance may continue into next year, said Desmond, who was named 2009’s best chart analyst by Technical Analyst magazine. While the S&P 500 now shows no signs of “major tops,” a slowdown in trading and weaker price charts in markets from Europe to Asia suggest U.S. stocks may follow the rest of the world into a third bear market in a decade, he said.