GO
Loading...

Charts Predict: Lows for S&P ... then More Lows

CNBC.com
Wednesday, 21 Jan 2009 | 6:38 AM ET

The S&P 500 will likely head back down toward its recent lows before the end of January where it will form a base, but it’s not time to buy the index yet, Chris Locke, MD of Oystertrade.com Management, told CNBC Wednesday.

S&P Heading Lower Again: Charts
The S&P 500 will likely head back down toward its recent lows before the end of January, but it won't be time to buy the index yet, Chris Locke, MD of Oystertrade.com Management, told CNBC Wednesday.

“The long term is very clear, once consolidation is out of the way … we’ll probably be heading lower later this year, into 2010,” Locke said while taking a technical look at the S&P chart.

“I really don’t see the worst part of this mess that we’re in ending, as far as the indices are concerned, until well into 2010,” he added.

The S&P is working down to make a low, but it’s unclear whether that low will surpass the low seen in November 2008, Locke said.

The low is due “between now and January 28th,” he said.

Overall, the bear market still rules stocks and there could be further surprises to the downside, he added.

Gold is the “only reasonable investment this year, because it protects against global currency devaluation,” he said.

Watch the video above for the full CNBC interview with Chris Locke.

  Price   Change %Change
S&P 500
---

Contact Europe: Economy

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More