Daily Traders Edge

JPMorgan Sees Technical Pieces in Place for a Bottom on S&P 500

October 24
09:48 2018

The S&P 500 Index’s drop Tuesday to its lowest level in nearly five months could be a sign of better days ahead, according to JPMorgan Chase & Co. technical strategist Jason Hunter.

“The break to new correction lows puts the pieces in place for a bottom,” Hunter wrote in a note. “We expect any residual weakness to find buying interest below 2,700.”

The S&P 500 tumbled as much as 2.3 percent to 2,691.43 yesterday, its lowest intraday level since May 29, before rallying back to close down 0.6 percent at 2,740.69.

Hunter still expects a fourth-quarter rally that could reach new cycle highs into early 2019.

Dennis Gartman, publisher of The Gartman Letter, also sees the 2,700 level as key for the S&P 500. He believes it is support “for now,” though questions whether that can last. But he thinks a bounce back toward the 2,820-2,850 range is “reasonable.”

Continue Reading at Bloomberg

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