S&P 500 Sets Sights On 5,400, But Analyst Warns Of Imminent Market Volatility
Portfolio Pulse from Piero Cingari
Bank of America's equity strategist, Savita Subramanian, has raised the year-end target for the S&P 500 to 5,400, indicating a 5% upside potential. Despite the positive outlook, she warns of potential market volatility, citing a neutral sentiment gauge and a divergence between the S&P 500 index and the percentage of stocks trading above their 50-day moving average. The SPDR S&P 500 ETF Trust (SPY) has seen gains, but the market's breadth is narrowing, suggesting caution.

March 04, 2024 | 3:50 pm
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
The SPDR S&P 500 ETF Trust (SPY) has registered gains in 16 of the last 18 weeks, despite a decrease in the percentage of stocks trading above their 50-day moving average. This suggests a potential short-term volatility but maintains a positive year-end outlook.
The SPY ETF's performance is directly tied to the S&P 500 index, which is expected to see short-term volatility due to a divergence in market breadth. However, the year-end target revision to 5,400 by Bank of America suggests a positive outlook, balancing the potential for short-term pullbacks with optimism for a year-end rally.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90