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11% Retracement Coming for Dow, S&P: Strategist

Thursday, 30 Jul 2009 | 2:18 PM ET

Emily Saunders, CEO of Sanders Financial Management said she projects an 11-percent retracement of the Dow and the S&P.

11% Retracement Coming for Dow, S&P: CEO
"We believe there's going to be a W-shaped recovery, particularly in the equity markets, and we're now on the top end of the middle part of the 'W'," Emily Saunders, CEO of Sanders Financial Management, said Thursday. "We're looking for an 11% 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’.”

Counterpoint:

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.”

  • US Dollar Index Now
  • Dollar vs Yen, Aussie, Loonie, Kiwi

Disclosure:

No immediate information was available for Saunders or her firm.

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