Macro

S&P 500 Hits New High, Bull Run Eyes 6,100 Target

S&P 500 reaches new high with potential 6,100 target, Wall Street bullish with BMO's 5,600 forecast, Goldman optimistic despite surpassed goal.

By Bill Bullington

5/15, 13:13 EDT
S&P 500
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Key Takeaway

  • S&P 500 hits a new all-time high, erasing a 6% pullback and signaling strong bullish momentum with potential targets at 5,295 and 5,495.
  • No successful bearish patterns since last October; current trends suggest the bull market may continue towards an ultimate target of 6,100.
  • Strong market trends are characterized by successful bullish patterns and the failure of bearish formations, indicating sustained upward movement.

S&P 500 Hits New Heights

The S&P 500 Index achieved a fresh all-time high, signaling a robust momentum in the US stock market. This milestone comes after the index swiftly recovered from a 6% pullback, showcasing the strength and resilience of the market. Frank Cappelleri, Founder of Cappthesis.com, highlights the importance of classical chart patterns in predicting market movements. According to Cappelleri, the S&P 500's journey to new highs was marked by five consecutive successful bullish patterns, with no successful bearish patterns since last October, underscoring a dominant upward trend.

Wall Street Raises Targets

In response to the S&P 500's rally, BMO Capital Markets has revised its year-end target for the index to 5,600, up nearly 10% from its previous forecast of 5,100. This adjustment reflects a bullish outlook on the market's momentum, with strategist Brian Belski citing underestimation of the market's strength. The new target represents a 6.7% increase from the index's last close, positioning BMO Capital as having one of the highest forecasts among major Wall Street analysts.

Goldman's Optimistic Stance

Despite the S&P 500 surpassing Goldman Sachs Group Inc.'s year-end target of 5,200, the firm maintains a positive outlook on US equities. Ben Snider, a senior strategist at Goldman, emphasizes the favorable fundamental backdrop for share prices, driven by strong earnings and confidence in disinflation. Goldman's bullish long-term stance is supported by the expectation of continued economic strength and corporate earnings, suggesting that investors should hold onto stocks.

Street Views

  • Frank Cappelleri, Founder of Cappthesis.com (Bullish on the S&P 500):

    "Strong trends are made from both bullish patterns working and bearish patterns failing. If there’s one thing that needs to change for the market’s long-term trend to reverse to the downside, it’s that."