The S&P 500 rose to yet another record high today closing at 5241.53 (chart). We wrote the following last year on July 19 in our Morning Briefing: "The S&P 500 is now almost at [our yearend target of] 4600. It closed at 4556.27 on Tuesday. Rather than raise our year-end target, we are raising our expectations for what the bull market could deliver through the end of 2024 and beyond. We think that 5400 is achievable by the end of next year. If that happens, then 5800 would be our target for the end of 2025. In other words, we think that the bull market has staying power."
The S&P 500 could get to 5400 by the end of this month, well ahead of our schedule yet again! It's only 3.0% higher from here. The DJIA could rise to 40000 tomorrow. That's only 0.4% higher (chart). The only problem is that according to Dow Theory, the DJTI needs to rise to a new record high to confirm the uptrend in the DJIA.
Then again, the theory is a bit dated. The economy is less about producing and transporting goods and more about processing data. Datacenters are becoming as important as transportation hubs.
