S&P 500 May Test October Lows as Bounce Fails Again, BofA Says
- Rally stalls near 2,815, sending index below 40-week average
- Suttmeier among chartists who warn rout is not over for stocks
Traders work on the floor of the New York Stock Exchange on Nov. 12, 2018.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
A two-week bounce in U.S. stocks failed a key technical level, a sign that the S&P 500 may test its October lows, according to Bank of America Corp.
While the benchmark index ended last week with another rally of more than 2 percent, the ascent faltered around 2,815, a level that halted a similar recovery attempt in mid October and represented a 61.8 percent retracement of the entire decline from the September peak. A daily sell signal on Friday based on Tom Demark’s market-timing indicators suggested that resistance is likely to hold, said Stephen Suttmeier, BofA’s technical analyst.