BofA: History shows that S&P could reach 3,000 sooner than you think

Bank of America's technical strategist Stephen Suttmeier made a bold call on Tuesday revealing that based on previous bull markets, S&P500 may reach 3000 by 2019.

"We are of the belief that this is a secular bull market akin to the one we saw in the 1950s," he said. "And if you overlay the one from the 1980s as well, suggests that 3,000 is a possibility on the S&P sometime by 2019."

While the prediction is two years down the line, it would amount to a 27 percent rally in the S&P from Wednesday's levels. Suttmeier is essentially saying that today's market price patterns are running in "lock step" to those from the 1950s and 1980s, so that 27 percent move would replicate market moves from those times.

Even in the short term, Suttmeier believes that S&P could finish the year at 2500. So despite the sale of shares on Tuesday, when stocks had their worst day since before the elections, the technician does believe that another rally is on the way and that the pullback is short lived.

The S&P and the Nasdaq regained some of the previous day's losses on Wednesday, while the Dow remained at around the same levels.

Source: CNBC

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