Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

BofA says this S&P 500 rally could exceed 5400

Published 03/01/2024, 09:02 AM
Updated 03/01/2024, 09:05 AM
© Reuters.  BofA says this S&P 500 rally could exceed 5400

Based on the movement in January and February, BofA analysts see the S&P 500 pushing above 5400 this year.

The firm explained that a 1.6% rally for the S&P 500 (SPX) in January generated a bullish January Barometer signal for 2024, and with the SPX continuing to rally in February with a 5.2% gain for the month, this "triggers a bullish January-February Barometer for 2024."

After assessing the data back to 1928, BofA said it suggests that when the SPX is positive year-to-date through February, the year is up 80% of the time on an average return of 13.8%, which would put the S&P 500 at 5420. In addition, the rest of the year (March to December) is up 78% of the time on an average return of 7.8% (SPX 5490).

"When this has happened in Presidential election years, the SPX has been up 10 out of 11 times for both the year and March-December on average returns of 14.1% (SPX 5440) and 8.2% (SPX 5510), respectively," explained BofA.

Meanwhile, BofA's analysis shows that in years when the SPX has traded higher in both January and February, which is the 2024 scenario, the year is up 89% of the time on an average return of 15.6%, which suggests the SPX will be at 5510. March to December is up 86% of the time on an average return of 7.8% (SPX 5490).

"When this has happened in Presidential election years, the SPX has been up 100% of the time (7 out of 7 times) for both the year and March-December on average returns of 15.9% (SPX 5530) and 9.6% (SPX 5580), respectively," adds BofA.

Assessing the chart, analysts feel the SPX cup and handle favors upside to 5200 and 5600.

Latest comments

Have you tried trading crypto or forex and failed? I recommend you should try “primecryptomarket. c_o_m’, this is the best trading platform in 2024, I have made a profit of 380 thousand USD and withdrawal has been going on so smoothly for me.
Pride bulls 🌈↘️
hi
BoFA also say a lot of 🐂💩
Now that it's been forecasted, it won't happen.
If this crash this guys going jail?
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.