It was another record-breaking day in the markets as the Dow Jones Industrial Average (DJIA) jumped?60.44 points (0.4%) to 15,275.69. This is another new high for the sixth time in nine trading sessions, reported The Wall Street Journal, and No. 20 for the year.?
The Standard & Poor’s 500-stock index was not to be excluded for another record session as it rose 8.44 points (0.5%) to close at 1,658.78. To-date, the index has only declined in two trading session in May.
The Nasdaq Composite Index added 9.01 points (0.3%) for a 3,471.62 close.
And the VIX again followed the market’s rise, closing at 12.81, up 0.04.
Many have started to ask how long will the rally last and on Wednesday,?Tobias Levkovich, chief U.S. equity strategist at Citi Research, wrote that he sees it lasting for awhile with the S&P 500 Index possibly rising to 1,675 before showing some fatigue, reported MarketWatch.
By year’s end, the strategist does have a 1,616 target for the S&P 500.?
But for now, Levkovich added, “The good news is that there is a large mountain of cash on the sidelines to cushion a pullback, not to mention the senior loan officers? surveys support economic conditions. Hence, while we are a bit wary of chasing the rally now, it could go on a bit longer.?
Adding to the story is risk tolerance is expanding in the market, added Levkovich, as evidenced in the Russell Microcap Index (XX:RUMIC), which has?outpaced the S&P 500 in the last few weeks.?