[video] Quick Take: S&P 500 Could Hit 1,850 During 'Santa Claus Rally'
NEW YORK (TheStreet) -- The S&P 500 could hit 1,850 by the end of 2013, according to Keith Bliss, senior vice president of Cuttone & Company.
Bliss said the S&P 500 is not yet overbought, according to his firm's quantitative and technical models. Near the 1,860 level is when the S&P 500 begins to get ahead of itself, he added.
So although there are only three trading sessions left in 2013 following the close on Thursday, he suggested it wouldn't be unlikely for the index to tag 1,850 by year's end. He added that when volume is light, which is typically the case during the "Santa Clause Rally" -- the time between Christmas and New Year's Day -- it is very easy for price action to get overdone.
Bliss added that the rally should continue into 2014 as well. Money should begin to flow into the stock market in the beginning of the year, known as the "January Effect."He concluded that both institutional and retail investors will likely be buying U.S. equities since stocks were the best-performing asset in 2013. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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