The S&P 500 will rally towards 2250 by year-end, according to Ari Wald, Technical Analyst at Oppenheimer.
Wald says the recent breakout at 2135 is an attractive entry point given this level has now become support and all-time breakouts tend to perform well (see article ‘S&P: Pauses and all-time highs‘).
While he admits that headwinds remain, Wald continues to recommend overweight exposure to US equities based on:
1) The completion of a cyclical correction
2) Broadening internal breadth
3) Narrowing credit spreads
4) Stabilized commodity prices
5) A sentiment backdrop that is not yet at the extreme side of optimism