BofA Strategist Hartnett Sees Risk of S&P 500 Dropping 5% More From Here
- Sees benchmark testing key support at 200-week moving average
- Investors buy dip in tech stocks; global stocks have outflows
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The S&P 500 is at risk of dropping another 5% after the index fell below a key technical level this week, according to Bank of America Corp.’s Michael Hartnett.
The strategist — among the more bearish voices on US stocks — said that now that the S&P 500 had breached 4,200 points, there’s a chance it could continue sliding until it hits the 200-week moving average at 3,941. That level is considered a long-term support line that has halted market routs in the past — with the exception of the dot-com bust in the early 2000s, the financial crisis of 2008 and 2009, and the 2020 Covid pandemic.