© Reuters. S&P 500 Could Fall Below 3500 Soon, Bank of America’s Suttmeier Warns
By Senad Karaahmetovic
The is at risk of dropping below its June low at 3636 as well as undercutting the rising 200-week MA near 3586, warns a Bank of America Technical Research Strategist.
The risk of a new low in the S&P 500 has increased after last week’s break below 3900, which suggests a deeper pullback is likely coming. The strategist sees the potential for a drop to the low 3400s.
The bearish picture is further complicated by “nasty down days into October,” as suggested by seasonality trends. The strategist sees “plenty of negative (red) days for late September,” which could yield a buying opportunity for dip buyers in October.
As far as Nasdaq is concerned, the strategist also sees a heightened risk of falling below the prior support. The undercut of June’s bottom to low 11000s is “not ruled out” as the “downside gap from 12,420 to 12,640 offers a major overhang for any tactical bulls.”
The are up 0.2% while is nearly unchanged in pre-market Wednesday.