Just one trading day after the S&P 500 reached record heights, on Monday it did so again.
S&P 500 index (SPX) hit 1,618 intraday and currently sits at 1,619. Many expect this is just the beginning and a few analysts added their two cents about it.
Elliot Spar, market strategist at Stifel Nicolaus wrote via CNBC, “Our next near term target for the S&P is in the 1640 to 1650 area. However, you could just as easily get a pullback to test the 1,600-1,597 level in the short-term. Those of you looking for 1,700 S&P by year-end should remember that from here it is only 5 percent. Thus, stock selection will be of the utmost importance if you want to outperform if we get the next 5 percent up in the S&P.”
And then others analyst see even higher numbers. What do you think about 1,900?
In a research note by Laszlo Birinyi and Jeffrey Yale Rubin on Monday, they wrote, “It will be reported that this is now our forecast. We would rather think of this, as corporations do, as guidance. Our approaches and analysis continue to point toward higher prices. In addition to the historical parallels, we still view sentiment as subdued and nowhere approaching extremes.?
Brinyi added that the index surpassed his firm’s target of 1,600 and now this bull market could be compared to ones from 1982 and 1990, reported MarketWatch. If the current market is parallel, then a 1,900 SPX is viable by year’s end.
The firm has shown their commitment to this level by purchasing $170 December calls in the SPDR S&P 500 ETF (SPY). Year-to-date, the?ETF is up almost 14% to $161.88 and would need to increase 5% higher by December for the trade to see a profit.?
Meanwhile, the VIX is again below 13, sitting at 12.77, down 0.62%.