FXStreet reports that David Kostin, Chief US Equity Strategist at Goldman Sachs, warns there could be downside ahead in the S&P 500 index following its 40% surge from mid-March.  

“I think you’ve got three issues that are on the table with fund managers with whom I speak.

The first issue is the momentum, which is the broadening of the rally that I talked about before.

The second is valuation.

And the third is taxes. And those three things to me suggest that the market is at the high end of the range at 3,200.

And our target for the end of the year the S&P 500 is around 3,000, and there’s more downside than upside as a result.”