The S&P 500 is on track to see another double-digit gain by the end of the year, according to Frank Cappelleri, founder of CappThesis. Cappelleri predicts the index will hit 6,100 as long as it stays above a key bullish threshold of 4,800.
Stocks have been showing a major bullish pattern for months, with the S&P 500 climbing consistently higher since its low in October 2022. The index has crossed into a bull market territory and has broken through five technical thresholds, indicating a strong upward trend.
Investors have been increasingly optimistic about stocks, pricing in potential Fed rate cuts and a soft-landing for the US economy. Traders are betting on a 66% chance of a significant rate cut by the end of the year, while 50% of investors feel bullish on stocks in the next six months.
Despite the positive outlook, some forecasters have raised concerns about potential risks in the market. Valuation measures suggest stocks are resembling past bubbles, and there is a decent chance of a recession in the near future. New York Fed economists estimate a 58% chance of a downturn by February 2025.
Overall, the market is still showing strong bullish signals, and investors are eager to buy the dip as they anticipate further gains in the S&P 500.
