BofA "S&P All-Time High of 4900 Possible in Early Next Year"

Investment bank Bank of America (BofA) has forecasted that the Standard & Poor's (S&P) 500 index could reach an all-time high early next year.

According to the US economic media Business Insider on the 11th (local time), BofA strategist Steven Suttmeier predicted that based on technical signals, the current S&P 500 index at 4130.62 could reach 4900 by March next year.

This means the S&P 500 index could rise by 18.6% from its current level, potentially surpassing the previous high of 4818.62 recorded on March 31 last year.

Strategist Suttmeier stated, "The market breadth indicator is not bearish and is stabilizing positively," and claimed that the upward movement of the 'Weekly Global Advancers-Decliners Index' (AD line), a representative detailed indicator used to assess this, signals the continuation of a bull market.

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He also analyzed that on the New York Stock Exchange, a 'breadth thrust,' one of the market momentum indicators, appeared on March 31, marking the 34th occurrence since 1930. To determine this indicator, the number of advancing and declining stocks are summed, and the number of advancing stocks is divided by the 10-day moving average of this sum. The indicator is considered to appear when this value rises from below 40% to above 61.5% over ten days.

He added, "Other technical indicators, such as the golden cross where the short-term moving average crosses above the medium- to long-term moving average, are also positive," and forecasted, "Following a decline in May due to seasonal fluctuations, there will be a summer rally."

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