The S&P 500 appears to be topping out, having broken below a key support level, and could fall below 800 points in the coming months, Christopher Locke, MD of Oystertrade.com Management told CNBC.
The index has nudged through its 50-day moving average to the downside and is now sitting on critical levels around the 875-point level, Locke said.
“They’re all signs that this market is topping, if the market is topping and we start to break 875 (points), we will break what I consider to be a critical area for moves down toward the low 800s and under,” he said.
The index could even test its 12-year closing low of 677 points, which it hit on March 9, but it’s too early to tell whether it will keep falling to new lows from there, according to Locke.
"The period August to November should be a weak period in my view," he added.
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