Tuesday, February 17, 2015

Why the S&P 500 Could Hit 2000

I was on CNBC last week talking about the possibility of the S&P 500 hitting 2000 over the next two weeks.

Pro: S&P at 2000

I got a little pushback even though a move to 2000 would only be about 4.6%.  Nobody can predict markets but they tend to move in predictable cycles.  Below is a chart of the S&P 500.  What is interesting as that four times since December the S&P has gone down to the 2000 level and bounced back.  You can also see a lot of support for the 2000ish level from September and October.

The S&P could very well rally here and never look back, but with turmoil still in Greece and Ukraine and uncertainty about what the Fed is doing, a move back to 2000 wouldn't be that strange.

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