Wall Street counting on slow recovery

NEW YORK, Dec. 31 (UPI) -- Market analysts expect a slow recovery in U.S. stock indexes in 2009 with more volatility ahead, especially for the first half of the year.

A majority of analysts said the Standard & Poor's 500 index could still flirt with a new low for the bear market in the next few months, CNNMoney.com reported Wednesday.

The S&P's low for the year was 752 set Nov. 20. But a recovery "could end up tracing out the (crooked) design on Charlie Brown's shirt," S&P Chief Investment Strategist Sam Stovall said.

Experts predict the S&P 500 could end the year 135 points higher, reaching 1,025. The Dow Jones industrial average could gain 900 points to about 9,500, experts said.

Experts also forecast recovery for the tech-dominated Nasdaq composite index, which could finish the year up 160 points to about 1,700, CNNMoney.com said.

The year ending was marked by a huge financial shakeup in financial firms, weak corporate earnings, a bursting housing bubble and rising unemployment.

"A fair amount of damage has been done," said Tobias Levkovich, a strategist at Citigroup. But, "before the patient gets better, let's make sure his condition doesn't worsen," he said.