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According to Bank of America, the S&P 500 just gave a bullish signal pointing to a 19% gain by August 2025.
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The bank highlighted the twelve consecutive months of positive gains in the stock market.
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The signal suggests that stocks are still on a bullish backdrop despite April’s weakness.
A bullish signal just flashed in the stock market, suggesting the S&P 500 could rise another 19% to 6,000 points in August 2025, according to Bank of America.
In a note Tuesday, Bank of America technical analyst Stephen Suttmeier highlighted that the S&P 500 posted 12 straight months of positive year-over-year gains.
In other words, from March 2023 to March 2024, the S&P 500 had positive annualized returns every month. That bullish signal is the exact opposite of what happened last year, when the S&P 500 posted 12 straight months of negative annualized gains from April 2022 through March 2023.
“April 2023 broke this bearish streak with positive annualized returns. We viewed this as a bullish background signal for US stocks, and the SPX has risen more than 20% since then,” Suttmeier said.
The positive signal just sent reminds investors that despite the stock market’s weakness in April, with the S&P 500 down about 4%, the long-term trend of stocks is still up. And that suggests that there are still more gains to be made.
“Don’t lose sight of the secular bull market,” Suttmeier said.
According to Suttmeier, the monthly range of positive returns could extend from the current twelve months to twenty months, based on historical averages, which would coincide with a 17% gain for stocks. Meanwhile, the average streak of positive returns can stretch to 17 months, with a gain of 14%, based on historical data.
That suggests the S&P 500 could rise to 6,000 points in August 2025, and as high as 6,150 points in November 2025.
But in the near term, amid continued weakness in stocks, Suttmeier said investors should keep an eye on potential support levels for the S&P 500 at 5,000, as well as a range of 4,600 to 4,800.
These support levels represent a potential decline of as much as 9%, indicating that the current risk/reward profile for equities remains attractive.
Read the original article on Business Insider
