The S&P 500 could slump another 20 percent from current lows as it struggles to pull up from its latest leg lower, Richard Morrish, head of research from MIG Investments, told CNBC.
“We need to hold on to 740 (points) for the weekly close, for this week and for next week,” Morrish said.
If the S&P fails to hold, it could fall toward 687 points and “if it takes out that level and goes through it, then we’re really well open to the 550 level,” he said.
Holding at the 740 level would be a “struggle,” according to Morrish, but if it does manage to, it has the potential to rally back up to the 832 level, he said.
Meanwhile, the prospects for the yen are equally negative, according to Morrish. He expects yen weakness to start at the end of March, beginning of April.
Morrish sees the yen falling to the record low hit in 1979 of around 80 yen per dollar.
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