As the US stock market continues to break new historical highs, technology strategists at Bank of America believe that from a long-term technical analysis perspective, the current bull run in the US stock market can continue until around 2030 and is expected to rise to 7000 points by the end of 2026.
Technical analysis shows that US stock market bulls will continue to grow
Stephen Suttmeier, a technology strategist at Bank of America, wrote in his latest report that the long-term bull market in the US stock market is about to enter its 11th year and there is still enough momentum to drive further gains.
This long-term bull market in the US stock market officially began in April 2013, surpassing the peaks set in 2007 and 2000, and has since been fluctuating upwards.
This long-term upward trend was once again confirmed in December last year, when the S&P 500 index broke through near 4600 points, indicating a bullish cupholder shape. Since then, the index has climbed 14%, reaching a historic high.
Technical Analysis Chart of US Stock Trends (Source: Bank of America)
Bank of America predicts in its report that the rise of the S&P 500 index should continue, and suggests that the index may rise by another 34% to over 7000 points by the end of 2026. As of the close of this Monday, the S&P 500 index closed at 5218.19 points.
"The S&P 500 index has rebounded by 46% from its low point in October 2022," Sutmayer said. "A mid-term rebound of 106% from the low point usually lasts for about four years, indicating that the possibility of the S&P 500 reaching 7000 points by the end of 2026 is not ruled out."
Long cattle will last at least until 2030?
As for when the long-term bull market will stop, Sutmayer believes that there will be no end in sight until at least the end of 2030.
Satemar said:& Quota; The long-term bull markets of 1950-1966 and 1980-2000 lasted for 16 and 20 years, respectively, indicating that the current long-term bull market is in the mid-term stage and may continue until 2029-2033& Amp; Quota;
The report states that the S&P 500 index broke through the 4600 point mark in December last year, marking the rise of the US stock market to two recent price targets: 5200 points and 5600 points. At present, the target of 5200 points has been achieved, which means that the next short-term goal for the US stock market is to grow by another 7%, reaching around 5600 points.
In addition, Sutmayer emphasized that the S&P 500 index broke a record high of around 4800 points in January this year, indicating another price target of 6150 points. This means that there is still 18% room for the US stock market to rise. This prediction also conforms to the law related to the so-called "presidential cycle" - usually in the fourth year of the first term of a US president, it will bring upward momentum to the US stock market.
In terms of downward support, Sutmayer stated that investors should pay attention to the support levels of 4800 and 4600 points, which means the index may fall as much as 12% from the current level.