Stocks are ‘whistling past the graveyard’ and headed higher, technician says

Despite a whole host of potential market-endangering events, stocks keep climbing higher much to Wall Street's confusion.

Even with a terrible May jobs number, tumbling bond yields, low volatility and a Brexit as a summer possibility, stocks are still going higher. The S&P 500 actually hit 2,113 in intraday trading Monday, a level it hasn't seen since November of last year, after Fed Chair Janet Yellen spoke urging investors not to overreact to seemingly soft economic data.

According to Piper Jaffray technical analyst Craig Johnson, the markets are in actuality reacting just as they should be. "Markets right now I think are moving logically to the environment we're in and I think we're going to continue to see the market work its way higher," he said Monday on CNBC's "Trading Nation."

Not only does Johnson expect to see the S&P 500 rise above its May 2015 peak, he said that the market can work its way as high as 2,350 by the end of the year — a more than 11 percent gain in the next six months.


On the other hand, Susquehanna Financial's head of derivative strategy, Stacey Gilbert, believes the market's move is more "range bound" and maintains a bearish position. She cites the lack of risk being priced into equities as part of her prediction, though stresses that investors could look outside of the U.S. for growth.

"If you look on the broader international level, developed markets have the biggest risk there particularly on the ETF side where we can look at it on U.S. dollar terms. Brexit is by far the biggest risk that is out there," she said. "But if you look at emerging markets, we're seeing money move into there and this is an area where I think investors are looking for growth not specific to the U.S."

Gilbert also stresses that individual sectors, such as real estate, could be good investments for growth as well.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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