S&P index is forecasted to trade between 1,050 and 1,100 by the year end

Speaking on TV, Goldman Sachs' celebrity market strategist, Abby Joseph Cohen said that the S&P 500 Index may trade in a range of 1,050 to 1,100 toward the end of his year, although she warned the recovery could be choppy. The S&P 500 was trading around 1,000 late Thursday. The index has bounced back strongly since the March lows and is now up more than 10% since the start of the year.

Cohen, known as one of Wall Street's most bullish forecasters, told the cable channel CNBC that although not every economic sign is positive, investors have seen improvement in key areas such as the job market and business inventories. Still, she thinks the unemployment situation will improve in an erratic fashion. The Labor Department on Thursday said jobless claims dropped by 38,000 to a seasonally adjusted 550,000 in the latest week.

Furthermore, Cohen said her bullish outlook is based on corporate profits that are in the process of recovering. She said earnings of $75 a share for the S&P 500 next year are "reasonable" and that the S&P 500 at 1,050 would put the price-to-earnings ratio at about 14. "We do think that's achievable, but it doesn't mean we get there in a straight shot," she told CNBC.

In addition, Cohen added that she expects stocks to perform better than bonds as the economy gets back on its feet. Within the stock market, Cohen said she favors cyclical sectors such as energy, technology and financials.