S&P 500 Index to hit the 4450 mark as the technical bull market cycle continues – Commerzbank

The S&P 500 has recently started moving up out of its trend-confirming consolidation with an investment buy signal, which has given rise to a new technical interim target zone between 4400 and 4450 points for H2 2021, according to analysts at Commerzbank.

Technical price target raised

“Since July 2020 (price levels around 3000 points), its very high upside momentum has given way to a normal medium-term bull market trend (currently at 3750 points) in the immediate vicinity of the rising 200-day moving average. Since the turn of 2020/2021, we have seen the establishment of an additional uptrend, shifted upwards in parallel, whose trend line is now found at 4000 points.” 

“In the last few months, the S&P 500, whose previously rather pricey valuation has now been somewhat reduced by the sharp increase in the corporations’ earnings expectations for 2021 and 2022, has been moving in a consolidation (upward triangle) below the minor resistance zone at levels around 4257 points.” 

“In the last few trading days, the index has started moving with a new investment buy signal, and under the technical leadership of several large US technology groups, the market breadth is appealing.”

“As the former technical price target of 4200 points has been exceeded, the appealing overall technical situation now suggests a new technical price target zone between 4400 and 4450 points for 2021.”