Charts Predict: 'Dangerous' S&P Could Hit 450
The S&P 500 could slump to 450 points over the next year and half and investors should stay clear of this “dangerous market,” Royce Tostrams, technical analyst at Tostrams Groep, told CNBC.
“The S&P has confirmed that we have a very negative scenario. It has fallen out of bed in the past two weeks, dropping below the low of 2002 of 750 points, triggering another sell signal, a long-term sell signal,” Tostrams said.
“Downside potential for the next six months is about 550 points. For the next 12-to-18 months, maybe 450 points,” he said.
A slump to 450 points would mark a decline of over 30 percent from Thursday’s close.
Tostrams urged investors to remain “very, very careful,” and stay on the sidelines, because the market is “very, very dangerous.”
- Watch the full interview with Royce Tostrams above.
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