Charts Predict: S&P May Rally 20% then Fall

The S&P 500 could rally 20 percent in the first quarter of this year, but investors shouldn’t get used to the gains as 2009 will be another year of losses for the major indexes, Robin Griffiths, technical strategist from Cazenove Capital, told CNBC.

"We will end the year lower than we are now, but we will have a rally now until late March," Griffiths said.

The rally "might be some 20 percent from here and that would still only be a bear-market rally," he said while looking at the S&P 500 .

The New Year has seen stocks get off to a buoyant start as investors look back on one of the worst years in the market for decades. But the underlying economic problems remain unsolved, according to Griffiths, and any stock gains can only be temporary.

"The economy is in incredibly bad condition and will stay in bad condition," he said.

Griffiths also sees further weakness for the pound versus the euro. Watch the video above to see his views on oil prices.

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