“Everything Is Rolling Over” – BofA Watches The Carnage
by Tyler Durden
ZeroHedge.com
02/24/2016
In recent weeks Bank of America’s new chief technician Stephen Suttmeier has been surprisingly bearish, predicting that the rally is over, as Tom DeMark cautioned yesterday, key support levels are not defended in which case the S&P 500 is looking at a substantially greater drop. Today, his skepticism reached new heights, when he warned that should the failure to break out higher persist then the market is facing a drop to as low ast 1575-1600, something which even Goldman now agrees with.
Below is an excerpt from his latest attempt at a diplomatic guide down:
The S&P 500 has not decisively broken down but the risk remains for a distribution top that goes back nearly 2-years. Resistances are 1950 and 1990-2025, but we cannot rule out a tactical breakout above 1950 that would suggest an interim double bottom off 1812-1810 that favors a rally to 2085. Even this tactically bullish scenario would mark another lower high within the downtrend from last May. At this point, the pattern and longer-term indicators suggest selling into rallies. Should the S&P 500 “The Generals” follow the weakness in the Value Line, NYSE, Russell 2000, and S&P Midcap 400 “The Troops”, there is risk below 1812-1810 toward 1730 (38.2% of 2011-2015 rally) and then 1600- 1575.”
Or just a breakdown in both 7 years of momentum and central bank credibility.
The Rest…HERE
