The S&P 500 is poised for a 14% rally as stocks are flashing signs of being oversold, strategist says

• Stocks have room to rally 14% this year, according to Piper Sandler strategist Craig Johnson.
• Johnson pointed to various indicators that suggest the S&P 500 is oversold.
• Stocks look fairly resilient when considering the current array of economic headwinds, he said.

The S&P 500 is set up for a strong rally by the end of the year, as stocks are flashing signs of being oversold, according to Piper Sandler strategist Craig Johnson.

Johnson reiterated his price target of 4,850 for the benchmark stock index. That implies a 14% jump in stocks by the end of 2023, despite a slew of headwinds beating down on the market, like high interest rates, high oil prices, and geopolitical uncertainty.