Analysts: Three major factors support the S & P 500 index at the end of the year, and it is expected to rise to 7,000 points

According to Scott Rubner, an analyst at Citadel Securities, the recent "healthy" pullback in the S & P 500 Index has set the stage for a strong rally, with market positioning and seasonal trends expected to drive year-end prices. In a note to clients, Rubner pointed to a combination of bullish forces, including ① continued demand from retail traders; ② institutional investors reduced their exposure to U.S. stocks ahead of the Thanksgiving holiday, which now gives them more room to re-open their positions; ③ and strong results from Nvidia, which could prompt traders to quickly position squaring hedges and rebuild positions before the end of the year. He expects the S & P 500 to move to 7,000 by year-end, which would be up 5.4% from Wednesday's close. Rubner also wrote that seasonal factors favor the stock market, with data going back to 1928 showing that the S & P 500 is typically up about 4% between now and the end of the year. Rubner also pointed to a key group he is watching: systemic investors. These funds, which mechanically adjust their exposures based on price trends and volatility, have "clearly entered a de-risking phase," reducing their stock holdings during the recent weakness. For Rubner, these mechanical outflows are likely to remain heavy in the coming days, before they will subside entirely.