11% Retracement Coming for Dow, S&P: Strategist
Emily Saunders, CEO of Sanders Financial Management said she projects an 11-percent retracement of the Dow and the S&P.
“We expect [the Dow] to be back down to the 8,000 level and high 800 level on the S&P,” Saunders told CNBC.
“Right now, the major market indices are about halfway between the October 2007 highs and March 2009 lows and we think this is going to be a W-shaped recovery in terms of the equity markets and we are now in the top part of the middle part of the ‘W’.”
Additionally, Saunders said the dollar is on a secular downtrend.
“It’s had some strength this year because it’s still the world’s reserve currency,” she said. “But we believe that over time, there will be a tripartite global currency, which consists of the US dollar, the Chinese yuan and the euro.”
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No immediate information was available for Saunders or her firm.