Strategy

Will The S&P 500 Make All-Time New Highs In 2019??? – Part 3

Will The S&P 500 Make All-Time New Highs In 2019???

Edward Yardeni, who spent decades on Wall Street running investment strategy for firms such as Prudential and Deutsche Bank, predicts stocks will break out to all-time highs this year.

“I’m still sticking with 3100 and feel better about it,” said Yardeni, who noted valuation multiples, low interest rates and inflation is setting Wall Street up for a very good year.

Will The S&P 500 Make All-Time New Highs In 2019??? – Part 2

Price is also approaching the triple top near the 2800 level. The triple top pattern is a type of chart pattern to predict the reversal of a long-term uptrend. 

Last, but not least as price has been moving up from the December lows, price has formed a daily demand zone (blue rectangle).

So the next level to challenge Edward Yardeni 3100 target is the 2800 or the 280 level on the S&P 500 ETF, SPY.

After many weeks, price has final closed above the important 2800 level (280 on the SPY).

This is significant because on the weekly chart, price closed above the triple tops

and is now supported by a weekly demand zone.

Stocks have risen a year after 18 midterm elections since World War II, with the S&P 500 delivering an average return of 14.5 percent, according to LPL Financial Research.

With the S&P 500 up only 1.3 percent since the midterm election last November, there indeed could still be room for stocks to run in 2019,” LPL says in a note.

The year prior to a presidential election has almost always been a good one — in the last 19 such years, the market is up on average 15 percent and 18 out of 19 times it’s been positive, according to Slimmon.

Source

The level I have been eyeing for many weeks remains the 288 on the SPY. If the Markets are going to turn, I anticipate the reversal at that level.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

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