'BREAK OUT': Market guru reveals how far stocks could soar this year

About this Video

• Video Title: 'BREAK OUT': Market guru reveals how far stocks could soar this year
• Channel: Fox Business
• Speakers: Charles, Stephen Suttmeier
• Duration: 00:05:42

Introduction

This Fox Business video features an interview with Stephen Suttmeier, a technical strategist, discussing potential stock market trajectories for the latter half of the year and beyond. Suttmeier presents scenarios ranging from the S&P 500 reaching 6400 to 6600, based on various technical indicators and historical data.

Key Takeaways

• S&P 500 Projections: Suttmeier forecasts the S&P 500 could reach between 6400 and 6600 by the end of the year, depending on market momentum and fundamental factors. A stronger performance in the first half of the year (over 5% return) often correlates with better performance in the second half.
• Breakout Analysis: The discussion delves into how to identify and interpret market breakouts, emphasizing the importance of confirming breakouts with volume and breadth. Trace levels are also used in determining potential targets. Longer-term projections suggest the S&P could even reach 7490 (a more long-term, 2027 type of move).
• Secular Rally: The current market conditions are analyzed within the context of the secular bull market that began in 2009. This long-term upward trend is considered a significant factor influencing current projections.
• Small-Cap Performance: The analysis extends to small-cap stocks (Russell 2000), highlighting the significance of volume-price relationships and the potential for periods of outperformance, though acknowledging the tendency for small caps to be acquired by larger companies. The use of moving averages (e.g., 100-day and 200-day) is discussed as a tool for identifying buy/sell signals.
• Tactical vs. Long-Term: The interview distinguishes between short-term tactical strategies based on momentum and longer-term investment decisions informed by broader market trends and basing patterns.