With global markets selling off sharply, can U.S. stocks hold their January lows?
Esteemed technical analyst Louise Yamada, Founder and Managing Director of the aptly named Louise Yamada Technical Research Advisors joins the panel for this conversation. Following is a summary of her main points.
Chart: S&P 500, weekly from Jan. 2003.
Analysis:Breaking down after support and uptrend were broken. Next leg down could take the S&P to 1,200.
Chart: Dollar (.DXY), weekly from Nov. 2002.
Analysis: Remains in long-term downtrend (bear market) from 2002 and has now broken to new low – our next target is at 72. Our long standing price target is 60.
Chart: Gold, weekly from Jan. 2003.
Analysis: Moving inversely to the dollar, gold remains in its structural bull market identified in 2003. The long term move could take gold to $1,150.
Bottom line: It’s a lousy time for stocks and the dollar but it’s good for gold, says Dylan Ratigan.