The worst drop in five weeks for the S&P 500 and the Dow industrials and a drive for the Russell 2000 into correction territory has brought out the bears and not just the SALT-y guys in Vegas.
Ralph Acampora, a known stock bull and technical analysis guru, told CNBC on Thursday before markets closed, that he thinks it could get really bad for stocks and that he has a “sick feeling” about what lies ahead.
The director of technical trading at Altaira Investment Solutions predicts the S&P 500, which is up 1.2% for the year so far, will see a 10% drop between now and October. His crystal ball darkens considerably for other indexes
“If you ask me about the Russell and the Nasdaq Compositeand the S&P MidCap, I think you’re talking about 20, 25%…and I call it a stealth bear market going on,” said Acampora.
He said the “melt-up” that began last December and carried into the first quarter of this year has left stocks like Facebook and Amazon overextended. That needs to be unwound and markets aren’t even close on that front, he said, saying “it bothered me then, and it still bothers me.”
Source: Marketwatch
