S&P 500 Chart Tracking 2008 Signals Danger to RBC’s Calvasina
- Index seen at risk of hitting 1,725 should 2018 low give in
- Strategist cuts S&P 500’s target for a second time this month
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Plotting the S&P 500’s chart now versus 2008 reveals similarities, at least to the naked eye. For Lori Calvasina at RBC Capital Markets,it means investors should prepare for the sell-off to get worse should recent support fail to hold.
Specifically, the benchmark index could tumble to 1,725 if it undercuts 2,300, a level that was close to the trough during the late-2018 sell-off and was briefly breached Wednesday, says the strategist. A drop to that would represent another 28% decline from the last close of 2,398 and take the market to levels not seen since 2013.