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SP 500 New Target : 2125 ?

S&P 500 pulled back today from its multi-year highs. From the past few years the monetary stimulus from the Federal Reserve and share buybacks approaching record levels have helped the S&P 500 reach record highs. 

"Morgan Stanley is expecting the index to rise further by 5.8%. Earlier the firm issued the 12 month target of 2050 target which it has now raised to new target of 2125. According to the firm the small cap stocks are expected to outperform in 2014."  - Source Reuters.

SP 500 : Hourly Chart

On the hourly chart, we can see that the index is still above the 50 day SMA and still biased towards bullish trend. On the stochastic oscillator the index is trading in the overbought zone so we might expect it to trim some of its gains. However if it declines below the 50 day SMA, another support from 100 day SMA will prevent the index in declining further down and might push towards new highs.