Bank Of America Analyst Foresees A 23% Upswing In S&P 500 Upon Breaching Key Level

The S&P 500 could potentially observe a 23% surge if it overcomes a crucial level, as suggested by Bank of America.

What Happened: Stephen Suttmeier, a technical research strategist at Bank of America, stated last week that a firm break above the low 4,600s might confirm a ‘cup and handle’ pattern. This optimistic pattern could potentially propel the index beyond its record high of 4,819 and towards a measured move in the low 5,200s, reported Business Insider.

Adding to the bullish backdrop, the long-term moving averages of the S&P 500 are ascending. 

“Rising 40-week and 200-week moving averages underpin this bullish longer-term technical setup,” Suttmeier said.

See Also: Rekor Systems (NASDAQ:REKR) Q3 Results – Company Reports Continued Quarterly Revenue Growth, Revenue CAGR Of 268% Over 2018-2022

According to Suttmeier, similar optimistic patterns are appearing in the Nasdaq Composite and other sectors like technology, semiconductors, and homebuilders, suggesting a favorable market situation.

Asset managers may be a key player in this possible surge.

“After institutional asset managers added to net longs in S&P 500 e-mini futures on the FOMO (fear of missing out) summer rally, they curbed their enthusiasm and reduced net longs on the fall dip. This provides asset managers with some buying power for a year-end rally, which tends to be strong in Presidential Cycle Year,” he added.

In addition, retail investors have also accumulated substantial buying power, with cash inflows hitting a record $1.62 trillion this year.

Read Next: Amazon, Nvidia, Apple, Netflix And This Indicator Signals Dogecoin Boom: Benzinga Bulls And Bears

Image via Shutterstock