Pain Trade
SPX: At current levels, the S&P 500 is near the upper-end of a fairly easy-to-identify technical resistance zone of ~2750-2840. At the moment, the SPX is being driven by a sentiment and positioning-driven pain trade that could easily overwhelm overhead technical supply. Valuation-based targets are a blunt instrument in any market but using a conservative 2021 SPX EPS estimate of ~$165 (consensus ~$171.50) and an ~18x multiple (conservative with 10-yr Treasury yields at ~0.75%) could give you an SPX target of ~2970.
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