Despite the signs of overcompra and a possible correction, the analysis of Bank of America suggests that the market maintains a bullish bias with space to reach new maximums.
The stock markets They begin to show signs of fatigue after the strong rally in recent months. However, Bank of America Consider that a prices decline It could offer an attractive entry point for investors with a medium -term look.
The S&P 500 recently activated a technical signal known as TD Combo, which has historically preceded short -term falls in prices. To this alert is added the Relative Force Index (RSI), which currently indicates overcompra conditions in the market.
“What we are seeing is not volatility, but an overheated market, especially sensitive to rates. A correction will come, but it is a purchase opportunity,” said bank’s strategists.
Possible setback before a new impulse
According to Bank of America calculations, the index could go back to 5,580 points, a key support zone that would imply a 5% decline compared to current levels. Even so, the most optimistic vision points to an escalation to 6,000 points, with the potential to reach 6,266, which would mark a new historical maximum in the short term.
The recent market behavior reminds what happened between 2015 and 2018, when, after presidential elections, the actions rose strongly before experiencing a technical correction. In 2018, the S&P 500 fell 10% after reaching a maximum post-electoral. This year, the correction has already reached 20%, which could anticipate a rebound if the pattern is repeated in 2025.
Greater participation drives trust
Another encouraging fact for bullies is the improvement in market amplitude: currently, more than half of the S&P 500 shares are located above their 200 -day mobile average. This indicates that the advance does not depend solely on technological giants, but is extending to other sectors, which gives greater solidity to the movement.
Despite a recent fall greater than 1% caused by the United States credit reduction by Moody’s, the index remains on positive terrain so far in May. For Bank of America, this confirms that the background trend continues to be ascending, and that any recoil in the short term could only be a pause on the road to new maximums.
Source: Ambito
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