Technically, the stock market seems ready to break out to new highs, but still remain doubts and uncertainty about the Fed's decision on interest rates, the US presidential election and other factors, many analysts predict a summer of uncertainty and instability.
Stocks rallied for a second day on Wednesday as the S & P 500 rose 14 points to 2090 price, a key resistance level. Dow added 145 to 17,851, and the Nasdaq is up 33 points to 4894. Treasury bondove are no major change to the two-year at 0.91%. The dollar index fluctuated and was slightly lower.
Scott Redler emphasizes that once seriously oversleep on the market in the past two weeks, traders have returned back to their seats because of serious exercise. According to him, now we have reasonable grounds to believe that the rise will continue, supported by better data on the US economy.
Ari Wald, technical analyst at Oppenheimer, thinks that the S & P500 will rise to a peak from last May to price level at 2134. He added that the psychological level of $ 50 a barrel in oil prices has passed and the financial sector has surged by 1% which will support his theory more likely for promotions.
Technical analysts at JP Morgan predicts a series of new highs for the S & P500 after breaking levels at 2.012 to 2.033, which then become an area of strong support.
But Bank of America/Merrill Lynch strategists and some others say there are a series of hurdles ahead for stocks, and the market may have a hard time getting past them unscathed. "Our view is that we think there's a lot of potential for a sell-off this summer, so potentially we could retest the lows we saw in February, that would be around 1,800. Our year-end target is still 2,000," said Jill Carey Hall, BoFAML strategist.
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