On Friday investors started to worry that the advance in the market may be sputtering out in a big way.
The S&P 500 dipped below the psychologically important 1,400 level for the first time in two weeks, though it bounced back mid-day.
The index, however, remains on track for its first weekly decline in seven weeks.
But if you’re knee jerk reaction is to run for the exits, you might want to have your knees checked.
Piper Jaffray technical analyst Craig Johnson tells us the rally has legs – long legs. “We think a new bull market is closer at hand than many others think. Here’s why:
- Financials are starting to engage
- Technology stocks start to break out
- Quality stocks are leading the way – secondary and speculative stocks should then follow
- Housing sector starting to work
Over the next 6 months Johnson sees the S&P trading at 1550.
But the rally doesn't end there. Find out when he thinks the S&P prints 2000 in the video above.
Posted by CNBC's Lee Brodie
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Trader disclosure: On August 23, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Mike Murphy is long SPLS CALLS; Mike Murphy is long WFC; Mike Murphy is long HTZ; Mike Murphy is long LNG; Simon Baker is long AAPL; Simon Baker is long JPM; Simon Baker is long WMT; Simon Baker is long AMZN; Simon Baker is long ADSK; Simon Baker is long LNKD; Pete Najarian is long AAPL; Pete Najarian is long C; Pete Najarian is long C CALLS; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT
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