The S&P 500’s bull market is resuming and the index will head towards 2500, says Ari Wald, Technical Analyst at Oppenheimer.
Wald points out that the series of lower highs seen since early March has been broken and that there has been a reversal of the index’s short-term downtrend, allowing a resumption of the long-term uptrend (see Chart). He says a breakout above 2400 would lead to a target of 2480 and that 2380 provides near-term support.
Overall, Wald says his cyclical indicators – which measure internal breadth, momentum and credit – remain positive. As such, his 2017 target of 2500 for the S&P 500, based on the average Year 2 performance following a major market low, is unchanged.