JPMorgan Expects S&P 500 To Make New All-Time Highs Within Weeks

Buckle your seat belts: The S&P 500 could be headed for new all-time highs for the first time in over a year. According to JPMorgan technical analyst Jason Hunter, the S&P 500 is poised for a major breakout.

That outlook flows from our longstanding view that the 20152016 range market an Elliott 4th-wave consolidation pattern within an intact bull market, Hunter explained.

In addition, Hunter believes that the positive momentum that the market has generated following its bounce off of February lows will carry the S&P 500 into the beginning of a new cycle of the bull market.

In the meantime, JPMorgan recommends watching dividend stocks. Hunter notes that dividend stocks have been outperforming the broader market from December all the way through the market rebound since February, implying that investors are still defensive. A change in that trend could be the first indication that a bullish breakout is imminent.

For now, Hunter sees support for the S&P 500 at around 2063, 2048, 1989, 1969 and between 1930 and 1960. JPMorgan recommends placing layered stops just below each of those support levels for investors core long positions.

After a rough start to the year, the SPDR S&P 500 ETF Trust (NYSE:SPY) is up 2.8 percent so far in 2016.

Disclosure: The author holds no position in the stocks mentioned.