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Peter Davis

An writer at FOMOdrive

  • Jun 30, 2023
  • 2 min read

S&P 500: Bank of America Predicts Stock Market Growth Due to FOMO

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Bank of America expects that the stock market may continue to rise.

The S&P 500 can be driven up due to the fear of potential losses and the presence of the "cup and handle" price pattern.

Bank of America (BofA) predicts that the S&P 500 broad market index could increase to 4,580 due to fear of missing out (FOMO), which is approximately 5% higher than the current levels.

According to BofA Chief Equity Technical Strategist Steven Suttmyer, the breakout of the S&P 500 above 4200 is being seen as a "fear of missed opportunity" rally. Suttmyer noted that asset managers' net long position in S&P 500 mini-futures has seen a sharp increase in recent weeks, indicating that institutional asset managers are succumbing to FOMO.

Sufferers of FOMO experience a feeling of anxiety when they think they are missing out on potential profits or opportunities. This can lead them to make rash decisions, such as joining a missed price movement in an effort to catch up on lost profits. This behavior is driven by emotion, rather than logic, and can lead to further losses.

Suttmeier emphasizes the "cup and handle" pattern of technical analysis, which is indicative of a sustained "bullish" trend.

Bank of America warned some investors that, unlike the S&P 500, other stock market indicators such as the NASDAQ 100, Russell 2000, Dow Jones and NYSE Composite have yet to surpass resistance levels, which could be a potential risk.

The Carson Group has previously acknowledged that the S&P 500 will reach a new peak by the end of the year, due to a combination of prolonged expenditure, diminishing inflation, and the conclusion of the Federal Reserve's monetary tightening cycle.

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