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Advertisement"I don't want to doubt this market," Salama said. Stocks will pause soon but still have upsideFollowing a brief consolidation period in early January, the S&P 500 has taken off again and set a streak of record highs. Chances are, the S&P 500 will top out around current levels of 4,900, Salama said. Even if the S&P 500 takes a hit, Salama doesn't think it will be down for long. Within the consumer discretionary sector, Salama expressed interest in e-commerce, cloud computing, and media powerhouse Amazon ( AMZN ).
Persons: , John Salama, wasn't, Salama, we've, Stocks, It's, Salama doesn't, Russell, he's Organizations: Service, Business, Dow Jones, Microsoft, Netflix, Nvidia, Devices, Apple, AMD, Communication, Healthcare Locations: what's
Like other technical analysts, Salama sees wisdom in mirroring the crowd, but trend-following indicators can also provide crucial contrarian buy or sell signals. Stocks have downward momentum, and the SPY just fell through the 434 level, which Salama said was key technical support. The value of the SPY is roughly one-tenth that of the S&P 500, so that corresponds to a break below 4,344 for the index. The SPY, a popular ETF mirroring the S&P 500, is oversold, according to the RSI (in blue). 5 high-upside stocks to buy nowAfter outlining his market outlook, Salama shared five stocks he's bullish on right now and gave a price target for each.
Persons: John Salama, he's, Salama, it's, they've, he'd, David Keller, Salama doesn't Organizations: Maverick, RSI, Trust, Wall Street, Bloomberg
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