23/10 Indices, page-5

S&P 500 to rally 14 per cent by year end: Piper Sandler

Even as conflict in the Middle East roils equity markets, the S&P 500 Index has held above a crucial level monitored by traders – evidence of a resilience that signals a big rally is imminent for US stocks.

That’s according to Piper Sandler & Co’s Craig Johnson, who bets extremely oversold conditions and the index’s ability to hold above the key 4200 technical support level sets the stage for a jump of some 14 per cent from now until the year’s end.

“We’re at the very lower end of this upper trending price channel – it’s going to take a lot to break through that level,” Johnson, chief market technician for the firm, said in an interview. “When you’re this oversold, you’re back to the end of the channel. One doesn’t get hurt falling out of a basement window.”
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