S&P 500 Index to continue its climb to 4200 in 2021 – Commerzbank

In the S&P 500, the good overall technical situation on Wall Street now signals technical price potential up to 4200 points in 2021, analysts at Commerzbank inform.

Key quotes

“From the medium-term technical perspective, the index was pushed from the interim high at 3394 points (February 2020) into the Corona bear market movement (price slide to 2192 points by March 2020; loss approx. -35.6%). There the index reversed in a ‘V’ recovery (means: prices rise with the same momentum with which they have previously fallen), and since then it has been in a normal medium-term bull market movement again.”

“Repeated buy signals suggested technical price potential up to 4000 points for 2021. On the one hand, the index has nearly moved up to this interim target, and on the other, the good shape of the technical market breadth (outside the technology sector) suggests a continuation of this record run – though probably with somewhat less upside momentum.” 

“It should be no surprise if the S&P 500 continued its ascent to 4200 points in 2021.”