Can the S&P jump to 1419 in the next 75 days?
That’s the closing high for the year hit back on April 2nd and according to S&P Capital IQ, there’s a strong argument to be made that’s where the market goes next.
They’ve looked at stock market pullbacks since 1946, crunched the numbers and now say the following:
“If this summer swoon is truly over, the S&P 500 will have recorded its 55th pullback (a decline less than 10%) since WWII, missing "correction" status by a mere six basis points.”
In addition, they say, “should the recovery time from this pullback be similar to prior recoveries, and there's no guarantee it will, the S&P 500 could surpass its 1419 April 2 closing high in 77 calendar days..”
On CNBC’sFast Money Halftime Report, the team of traders assembled for the TV show, agree that a sharp rally, like the one forecast by S&P Capital IQ is entirely in the cards.
“Watch 1325,” says Mike Murphy, founder and managing partner at Rosecliff Capital. “The market has failed at that level several times. But if we can break above, there’s every reason to believe the S&P trades up to at least 1400.”