Mkt to break out either way, stay on sidelines: Marc Faber

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Investment Guru Marc Faber said he sees a huge breakout from the narrow trading range soon. "I think the summer is shaping up nicely. The grave is out, we had a huge rally. We now have a narrow trading range but we will get a big breakout." He added that the S&P could hit 970-1020.

"I have turned kind of neutral recently because I think we are at that trading range. The big move, a huge move is coming in the dollar, bonds and in equities. But I am not yet sure clearly on what side it will be."

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We had already a big rally and now I think is the time to stand aside a little and look how the markets will move, Faber said "I think a big move is coming. But I would like to see really what will trigger the move."

"The US stock market is strong but the currency is weak; this signals tightening of global liquidity."