Wall Street analysts have been turning more bullish on equities even with major indexes near new highs and with the S&P 500 at arm's reach of the 1,700 mark.
Most recently, JPMorgan Chase's chief equity strategist, Thomas Lee, hiked his year-end target on the S&P to 1,775 from 1,715. Lee's new outlook is currently the highest among the top Wall Street firms and translates into a 5 percent upside by year-end.
"This has been a better bull than expected in 2013. … One of the positive takeaways from the second quarter has been better commentary regarding the Europe area," wrote Lee in a research note. "And this adds to the mosaic of generally improving Euro-area economic data points. With both the U.S. and Europe expected to see better growth in the second half, we believe the Street will be in a position to raise 2014 earnings."
(Read more: The key to trading the S&P today: Pro)