US market bullish as S&P 500 rises to highest level from 2008

Despite all the gloom and doom from the financial crisis, a bullish outlook pervades the US stock market. Stocks have risen 100 per cent since the bull phase set in in markets in March 2009. The Dow is flirting with the 13,000 level for the first time since 2008, with the benchmark Standard & Poor's 500 index, topping its April 2011 high yesterday even as it trades at a new bull market high.

However, according to analysts, money is made on Wall Street betting on the future, not the past and investors now seem to be concerned over signs of rally fatigue that could lead to a possible pullback. Professional investors though, also see a market that could pick up further and come back strongly to scale all-time high levels set back in October 2007.

The recent rally has come on better news from Europe, including a second bailout agreed upon by Greece and eurozone bankers, finance chiefs and private investors that according to Wall Street, would avert a 2008-style financial crisis. Stocks have also surged on better-than-expected economic news in the US that had reduced the odds of a double-dip recession.

According to some analysts, the market had enjoyed a huge relief rally.

They say the key question now, was whether the market could continue to move higher once it attained important milestones like Dow 13,000?

Many money managers believe Greece would need a third bailout at some point and with stocks at levels that had sparked selling in the past, traders sitting on profts could be tempted to sell book in profits before a rise in oil prices due to geopolitical fears involving Iran and Israel, hurts economic recovery.