The Standard & Poor’s 500 Index may jump 6.9 percent by the end of this month as the benchmark measure completes a year-end rally, according to Peter Beuttell, a technical analyst at MTS Research Ltd. in Bath, England.
“If you look around the world, certain indexes didn’t look like they recovered enough, so there is a chance that the initial rallies could repeat,” Beuttell said in a telephone interview today. “That supports the case for another rally pattern, which is under way now.”
The “double zigzag” that began in October will continue this month, with the S&P 500 climbing to a resistance level (SPX) of 1,330 by the end of the year, Beuttell said. The gauge slipped less than 0.1 percent to 1,244.28 on Dec. 2. The S&P 500 will not drop to its support level of 1,120 to 1,160 until next year.
The S&P 500 has rebounded 13 percent from its October low of 1,099.23.
“It’s seasonal for the market to rally,” Beuttell said. “The year-end rally began with the October low.”
In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes in a security, commodity, currency or index.
To contact the reporter on this story: Adria Cimino in Paris at email@example.com.
To contact the editor responsible for this story: Andrew Rummer at firstname.lastname@example.org.