Europe Economy

Charts: S&P Buying Zone Between 770 and 800

CNBC.com
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The S&P 500 has broken below a key head-and-shoulders pattern, which signals the index will be weak until October, but it won’t revisit the lows seen in March, Robin Griffiths, technical strategist at Cazenove Capital, told CNBC.

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Charts: S&P Buying Zone Between 770 and 800

“From the March low, most Western markets had a big rally … but they lost momentum six weeks ago and in the process made this head and shoulders top pattern. Now they’ve broken the neckline, it is predicting a down move,” Griffiths said while looking at the S&P chart.

“The prediction is we do a half to two-thirds retracement of the March rally, so it gives us a buying zone between 770 and 800 (points) for the S&P,” he said.

The S&P will likely hit a low in October and be weak until then, according to Griffiths. October brings a dip in the stock market 95 percent of the time, Griffiths said.

“It’s a pretty damn good bet that you should buy then,” he added.

- Watch the full Robin Griffiths interview above.

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