Reviewing notable technical levels, Evercore ISI indicated over the weekend that “lines have held” for the S&P 500 (SP500) (SPY) (IVV) (VOO), confirming a trend that points to potential upside by the end of the year. At the same time, the firm outlined that shares of Nvidia (NASDAQ:NVDA), which it said is “arguably the most important stock in the world right now,” has also held support.
“And in a world where the bond/stock correlation remains very strongly positive, the ‘ceiling’ on yields has created a very firm ‘floor’ under the S&P 500, the foundations of which date back to the depths of the Pandemic itself,” the investment institution said.
See the chart below that Evercore ISI provided:
Evercore ISI also added that because of the underlying support in the S&P 500, it has maintained a pathway towards higher gains and the firm’s year end price target of 4,450. The financial firm additionally highlighted that the potential for an overshoot to challenge the YTD high at 4,607.07 was possible as well.
“Arguably the most important stock in the world right now, has made a stalwart defense of its months long support line at $400,” the firm noted.
Evercore ISI went on to indicate that it views shares of NVDA as an Outperform and tagged the semiconductor firm with a price target of $600, as it sits as a core piece to the company’s long term thematic preference for what it labels as “AI enablers, adopters and adapters.”
See the chart below that Evercore ISI provided.