- Bears continue to make toppish calls as the S&P 500 prints fresh highs.
- Peter Brandt sees the SPX climbing above 3,500 after a technical breakout.
- Fundamental factors such as the “not QE” and money market balances support Brandt’s bullish take.
Successful investors know that the trend is your friend. If a market is trending up, it would be wise to ride the bullish wave. Otherwise, you are positioning yourself for slaughter.
Getting slaughtered is an experience that many S&P 500 bears know all too well. They continue to post toppish charts and proclaim that the end of the decade long expansion is over. As we all know, the SPX continues to rip higher and post fresh all-time highs.
Eventually, the bears will get it right but it seems like it won’t be anytime soon. The S&P 500 is still in a strong uptrend and it is likely to continue until the end of 2020.
Fundamentals Support Peter Brandt’s Bullish Take on the S&P 500
Peter Brandt took to Twitter to share his bullish stance on the S&P 500. The widely-followed trader claims that the index has a substantial upside as it can climb as high as 3,524. The analyst’s prediction comes after the SPX broke out from an inverse head-and-shoulders pattern.
The bullish price action is not the only catalyst that can send the market higher. With the current macro environment, the stock market is likely to push higher due to the Federal Reserve’s intervention. Ever since the “not QE” QE4 started, the S&P 500 has been on a tear. It appears that the Fed is giving the bulls ammunition to drive the SPX to greater heights.
The bullish tone set by QE4 is driving market sentiment from fear to extreme greed. Investors are beginning to realize that the party is still going strong.