With the stock market reaching new highs and showing resilience across various sectors, Oppenheimer’s Ari Wald predicts that the bullish trend is set to continue into 2025. Wald emphasizes the positive signs in key sectors like industrials, financials, and technology, indicating a healthy market advance. Here are some key points highlighted in his analysis:
- Market breadth remains strong, with over 60% of stocks on the New York Stock Exchange above their 200-day moving average, signaling a widespread market gain beyond a few mega-cap tech companies.
- Defensive leadership in certain sectors may lead to a catch-up for underperformers, further supporting the overall market growth.
- Traders can consider buying into last week’s breakout to new cycle highs in the S&P 500, with a stop-loss set at the 5,650 level to manage risks effectively.
- Wald’s upside target price of 6,000 for the S&P 500 in the first half of 2025 represents a potential gain of 5%.
- Based on historical data, Wald’s analysis suggests that if the current bull market cycle follows the average trend, stocks could continue rising until the end of 2025, potentially reaching around the 7,000 level.
- Wald highlights the importance of leadership sectors like Industrials, Financials, and Technology, which are making new highs and contributing to the market’s overall strength.
- Despite lagging behind in relative performance, sectors like Healthcare are still breaking out to new all-time highs, showcasing the depth and breadth of the market rally.
In conclusion, Wald’s analysis points towards a continued bullish trend in the stock market with strong market breadth and positive signs in key sectors. Traders and investors may consider leveraging the current market conditions to capitalize on potential growth opportunities in 2025.
