may be rallying, but a bear market unwinding is still on the horizon, according to Morgan Stanley stock strategist Mike Wilson.
In a note published on Monday, the well-known bear said the short-term outlook is positive, though he described the market's recent resilience as running on "borrowed time."
If bond yields and the dollar continue to retreat, then stocks could go higher, with the S&P 500's next resistance level at 4,150, Wilson said, representing 2.5% upside from last week's close.
"Equity markets survived a crucial test of support last week that suggests this bear market rally is not ready to end just yet," he wrote, referring to S&P 500 remaining above its 200-day average.