Both the S&P 500 index and the Dow Jones Industrial Average hit record highs yet again Tuesday, and ace analyst Ralph Acampora, director of technical analysis at Altaira Limited, thinks the party is in no way over.
"We've got good moves coming between now and the end of the year. I'm very optimistic," he told CNBC. Acampora thinks the S&P 500 will rise to 2,100 by year-end.
While that represents just a 2.3 percent increase from Tuesday's close of 2,051.80, it translates to an uncompounded annualized gain of 20 percent.
The market's rollercoaster action in recent months is a bullish sign, Acampora said. The Dow rose to a record in July, dropped in August, surged back to a record in September, plummeted in October and has now bounced back sharply, he said. That bounce-back has bullish implications, he believes.
History also argues for a rise, Acampora says. "In mid-term election years, the last two months of the year have been very, very strong," he said. And "the third year of a president's term is usually the strongest of all four years."
Others are bullish, too. "Consumer and investor sentiment is pretty positive at the moment," Omar Aguilar, chief investment officer of equities at Charles Schwab Investment Management, told Bloomberg.
"We continue to see M&A [mergers and acquisitions] as the topic of the day, and U.S. economic data is suggesting really good stability."
© 2024 Newsmax Finance. All rights reserved.