Oppenheimer sees near-term S&P weakness, would buy on dips

NEW YORK (Reuters) - U.S. stock index futures are pointing to a solidly lower open on Monday, but if recent trends hold, investors may use the decline as an opportunity to add to positions.

The S&P 500 hasn't had a correction - defined as a 10 percent pullback from a peak - since 2012. While the benchmark index has had multiple pullbacks of much smaller magnitudes, profit hunting has prevented steeper losses, a strategy Oppenheimer endorsed in a note to clients on Monday.

"Our tactical recommendation is to buy pullbacks in the S&P 500 because the longer term evidence remains bullish, in our view," the firm wrote.

Though positive on stocks in the long term, Oppenheimer said near-term conditions were unfavorable because investor expectations were overly high, and because fewer stocks were making new highs. The firm expects a pullback of 5 to 7 percent.

"We view the [S&P] index's trend as positive as long as 1,900 support is upheld, and expect higher highs once near-term conditions strengthen," it wrote. The S&P closed Friday at 1,982.85.

(Editing by Chizu Nomiyama)