FXStreet reports that Mike Wilson from Morgan Stanley believes that while a correction on the S&P 500 Index may be afoot, this isn’t atypical for a young bull market. Therefore, he targets 2800 before the rally resumes.

“The V-shape recovery in markets is foreshadowing a V-shape recovery in the economy and earnings. It's following the same pattern we witnessed after the Great Financial Crisis recession. In fact, the correction is right on schedule with that period too, and it's likely not finished. More specifically, I'm targeting 2800 on the downside for the S&P 500 before this bull market resumes in earnest.”

“Our June 2021 base case price target for the S&P 500 is now 3350 with a bull and bear case target of 3700 and 2900, respectively.”

“With housing and equity markets holding up, the average consumer net worth is unchanged, which means we aren't expecting a big deleveraging cycle this time. On the contrary, it appears the consumer wants to get back to normal fast, which means 70% of the economy is able to recover quickly.”