Better buckle up—market turmoil may not be over

If you're hoping for relief from the post-Brexit market turmoil, better buckle your seat belts: It may get even worse, some analysts say.

"I know it sort of feels like the horse has left the barn here, we're down 6 percent post Brexit in just the last two sessions alone, and unfortunately I think the market moves lower," Rich Ross head of technical analysis at Evercore ISI, said Monday on CNBC's "Trading Nation."

"Until European banks stop going down, bund yields stop going down and pound sterling stops going down and gold stops going up, I think it's just going to continue to put downward pressure on the S&P."

After Britain voted in favor of leaving the European Union last week, markets declined sharply around the world. European banks and the pound sterling were hit especially hard, with the STOXX Europe 600 bank index saw its worst two-day drop in its history.

The Dow and S&P 500 sank to their lowest level in three months.

The S&P traded under the 2,000 level for most of Monday's trade, managing to close just a hair above it. But for Ross, the large-cap index could soon see 1,940 and below.

"It's a setback as well but I think you have to cut your losses and sort of accept the fact that the S&P is poised to go lower," he said.

Boris Schlossberg, managing director of FX strategy at BK Asset Management, who has been relatively bearish on equities all year, agreed that stocks are going to continue to drop. "I've been arguing that every rally is a sell this year," he said on "Trading Nation."

"I think that with the pressure from Brexit, with pressure from U.K. fracture, and the fact that the Fed is actually going to be stationary for a long time, growth is really going to be dampened, and that's going to put a natural ceiling on the S&P," Schlossberg said.


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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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