Bill McLaren expects "scary" correction if S&P 500 rises until September 5

Independent trader Bill McLaren told CNBC on Friday that the S&P 500 should rise until September 5, but it faces a "scary" correction after that.

“This is a very powerful cycle, the vibrations have been very strong for this so I would expect a correction that’s going to look scary if we run up into it,” McLaren said.

Although McLaren highlights the risks of a correction, he said there was upside potential in the short and medium term for the US stock index.

“There’s more time to run for this leg, and also on an intermediate-term basis there’s much more time to run,” McLaren said.

The S&P closed at 1,031 points at Thursday’s close having added to recent gains that have pushed the benchmark index above the 1,000-point barrier.