Big Picture Fridays: S&P 500 Has 40% Upside To 4,300
The S&P 500 has 40% upside from current levels. Applying fibonacci extension levels from the 2007 highs to the 2009 lows creates a series of price objectives that have turned out to be key support/resistance levels for the S&P 500 over the past ten years. The S&P is now marching towards its last price objective, the 423.6% extension level which is hovering around 4,300. The last time the S&P broke out of an extension level (the 161.8% level in mid 2016), stocks rallied 40% in 30 months. Applying the same trajectory to the 261.8% breakout level, the S&P 500 can rally to 4300 over the next two and a half years. A strong consumer, a pro globalization trade policy administration in the White House, and the millenial generation graduating from student loan debt to mortgage and auto debt can sustain this type of rally. Happy Big Picture Friday!