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Acampora sees Dow 11,500
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December 29, 1998: 7:55 p.m. ET
Influential Wall Street analyst says the Dow will hit 11,500 in 1999
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NEW YORK (CNNfn) - The stock market is showing so much broad-based strength that one influential Wall Street analyst expects the Dow to shatter, not just break, the 10,000-point mark in 1999.
Ralph Acampora, chief technical analyst at Prudential Securities, told the Moneyline News Hour with Lou Dobbs Tuesday he expects the Dow Jones industrial average to reach 11,500 next year.
One factor that has impressed Acampora is the broad-based strength of the market, pointing to Tuesday's rally as an example. The Dow closed Tuesday at 9,320.98 -- up 94.23 points.
"Today was the first time we saw the 'dot-com' [Internet] stocks actually pull back… but instead of dragging the rest of the market down, the rest of the market went up," Acampora said. "I was very, very impressed. In other words, we don't need the Internet stocks for leadership - we've got other names."
Acampora returned to the bulls in November after turning bearish on the market in August. He noted Tuesday that the worst is behind the market and the gains will continue in 1999.
"In the first part of the year we're going to have more money coming in - it's the 401K season," he said. "We've got the elements for a higher market."
Among those elements, Acampora said, are more stocks that have shown resiliency while the rest of the market suffers.
"The one's that were doing well in the early part of 1998 - drugs, retailers - did well in the decline and they're still the leaders," he said. "I wouldn't abandon them to find other leaders. Just look around you - the list gets longer and longer. That's what make it so impressive to me."
Although Acampora expects the Dow to soar, he pointed out that it won't be a smooth ride. [263K WAV] or [263K AIFF] 
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