America’s S&P 500 index of leading companies could soon hit the 3,000 mark, according to one US analyst.
Avi Gilburt of ElliotWaveTrader.net says the index is on course to pass the barrier in the first half of this year.
He says with the S&P now in the 2,850 region, as long as the next pullback doesn’t break below 2800, all the signs are the index is heading towards 3,000.
“It would take a sustained break of the 2,765 region to change this perspective,” he says, writing for MarketWatch.
“While I see signs in other areas of the market that may suggest this more aggressive bullish stance in the SPX may not attain 3,000 in the current structure, I am simply unable to set aside the clear strength seen in the technicals along with the extraordinary extensions being developed weekly by this market.”
He adds: “I have to view the path as taking us to 3,000 sooner rather than later much more realistically.”
Elliot Wave principle is a type of technical analysis used by traders to forecast market cycles based on investor psychology.