The stock market's enduring bull rally, now approaching its eleventh anniversary, shows no signs of abating, with Bank of America projecting continued upward momentum.
This bullish phase, which took off in April 2013 after surpassing previous high points set in 2007 and 2000, received further validation in December when the S&P 500 surpassed a significant bullish pattern at the 4,600 mark, leading to a subsequent 14% surge to unprecedented heights.
Bank of America's recent analysis anticipates sustained growth for the S&P 500, projecting a potential increase of up to 34% by the close of 2026. Stephen Suttmeier, a technical strategist at the bank, notes, "Following a 46% surge from its October 2022 nadir, historical patterns of median rallies suggest a potential ascent to 7000 for the S&P 500 by late 2026."
Suttmeier predicts the current secular bull market, mirroring the longevity of past bull markets from 1950-1966 and 1980-2000, could persist well into the late 2020s or early 2030s, underscoring its potential to extend through 2029 to 2033.
The recent breakthrough above the 4,600 threshold sets forth two immediate price targets: 5,200 and 5,600. Having already achieved the 5,200 milestone, the S&P 500 is now poised for an additional 7% climb to reach approximately 5,600.
Moreover, January's surge past the previous all-time high of around 4,800 has unveiled a further price goal of 6,150, indicating an 18% upside. This projection is consistent with the historical trend of stock market performance in the fourth year of a president's first term, typically characterized by bullish activity.
Investors are advised to monitor the 4,800 and 4,600 levels closely as critical support points, which, if breached, could imply a downside risk of up to 12% from the current standings.
