2023-06-17 05:31:15
The rally in U.S. stocks in a bull market is about to run out of steam, he said.Citigroup pointed out.
Strategists at the bank, led by Scott Cronert, reiterated this week that they expect the S&P 500 index to fall to 4,000 by the end of the year. It also unveiled a new target of 4,400 by mid-2024. That’s just below Thursday’s close of around 4,410.
In a note to clients this week, Kronert said he expects a lack of clear corporate earnings revisions and a looming U.S. recession to hit ballooning stocks. A number of key indicators of investor sentiment point to a cautious stance on the recent breakout of the S&P 500, he said. The Levkovic index, which is an indicator of sentiment, is -0.18, and is still in the area of ”panic”.
“Together, this suggests that the S&P 500 moves above 4,400 is relatively bleak,” he said.
Original title:Citigroup Says S&P 500 Above 4,400 Leaves No More Room for Gains (excerpt)
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