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Bank of America believes that there are two "bullish" signals that suggest a possible rally to record highs in the US stock market by the beginning of next year, according to Business Insider.
If these signals are present, the S&P 500 could rise by 19% compared to current levels by the end of this year and the beginning of next year.
Technical strategist at BofA, Stephen Suttmeier, speculated that the S&P 500 could rise to 4900 points by March 2024.
He pointed out that a number of seasonal factors suggest a market decline in May before a summer rally. The "bullish" technical signals support the argument for S&P 500 growth by the end of the year.
The two specific signals are related to the breadth or level of participation in upward movements in the stock market, and a breakout above the weekly global trendline of the rise-fall indexes of 73 countries usually signals the continuation of a bullish trend in the US and other markets.
The expert's bullish indicator has already caused a breakout in the stock index in February, and it is possible that the S&P 500 could reach 4900 points in February 2024. After global expansion, the median average growth of the S&P 500 was approximately 19%.
The second "bullish" signal occurred on March 31, when the New York Stock Exchange made its 34th width jump since 1930. When calculated, it results in a percentage, and if it falls below 40% and then rises above 60% within 10 days or less, the indicator has worked.
The average and median forward annual yields are 18% and 21%, respectively, and if similar yields occur this time, the S&P 500 will rise in the range of 4800 to 4900 points.
It should be noted that over the past few months, other "bullish" technical signals have worked for the S&P 500, and in combination with favorable seasonal data and positioning, all of them suggest stock market growth next year.
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