- Strong Banks, Weak Credit: Treasury Rethinks TARP
- How Many US Consumers Will Shop this Weekend?
- Tuesday's Heavy Dose of Data to Dictate 'Risk' Behavior
- World's Largest Share Issue Priced at Deep Discount
- Obama says Boosting US Jobs is Top Priority
- Playboy to Outsource Most Magazine Operations: Report
- Why the Dollar Will Likely Stay Weak for Some Time
- EU Drops Proceedings Against Qualcomm
- Appeals Court Denies Microsoft's Alcatel Petition
- Can Murdoch Help Bing Challenge Google and Shift the Content Equation?
- HP's Mark Hurd
- HP Comes in As Expected; Is It Time to Buy?
- 9 Stocks That Play Rising Water Costs: Strategists
- Weis' Deal Likely Won't Change Big Money Contracts
- Gold Prices Can Double in 3 Years: Portfolio Manager
- Nov. 23: Unusual Volume Leaders
- Help Wanted—Please Run $4 Billion University
- Apple Comes to AT&T's Rescue
MOST SHARED
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- Why Amazon Rules Retail
- Wave of Debt Payments Facing US Government
- The Social Media Gaming Threat
- China Eastern to Complete Shanghai Air Buy by End '09
- Gold Will Collapse Like Oil Did in 2008: Charts
- Paul: Audit the Fed
- Prepare For Large Decline In Stocks, Next Year?
- JAL Slides to Record Low on Bankruptcy Jitters
- Nielsen Ratings Coming to Video Games
Text Size 
We are in a cyclical recovery that has further upside potential, Shane Oliver, head of investment strategy at AMP Capital Investors, said Friday. He said the S&P 500 index is heading towards the 1,200 to 1,250 level.
"The markets have been able to break out to new highs for the year; the volumes have been reasonable; the number of stocks participating in the rally that we've seen over the last couple of weeks has been very high, in other words the breadth has been good, all is well," he told CNBC.
The U.S. market is on its way up after breaking the neckline on the head-and-shoulders pattern — a chart pattern where a reversal sees spikes higher, he said.
The Dow, the S&P 500, and the Nasdaq all reached fresh 2009 closing highs Thursday, and are at their highest since November (Dow and S&P 500) or October (Nasdaq).
"There's a lot of upside to go," Oliver predicted. "Yes, there's going to be setbacks along the way, but I think the broader trend will be up."
"Fundamentally, I think the good news about this rally, which is different to the rallies we saw through last year, is that it has been backed up by a bit of economic data," he said.
Existing home sales were up for the third month in a row in June, signaling a stabilization in the US housing market, he noted.
"So far, 74 percent of the (U.S. earnings) results have come in better than expected," he said.
He added he likes stocks, commodity currencies, investment grade corporate bonds over the next 6 to 12 months.
- A diet high in fat and sugar might actually be good for your portfolio.
- Warren Buffett and Bill Gates discuss the economy and other subjects with CNBC's Becky Quick.
- From the AIG&T to the Merrill Lychee, Jane Wells lists this year's fashionable holiday cocktails.
- The show attracts a big TV audience every year, but this year it may take on even more importance.
- …you'll want to be prepared. Tips for getting the most out of the post-Thanksgiving shopping frenzy.
- Congressman Ron Paul explains to Squawk Box why he’s pushing legislation to audit the Federal Reserve.
Data is a real-time snapshot *Data is delayed at least 15 minutes