- Analytics
- News and Tools
- Market News
- The S&P 500 just hit a level that could spark the next meltdown - Canaccord Genuity
The S&P 500 just hit a level that could spark the next meltdown - Canaccord Genuity
CNBC reports that the stock market's three day win streak may be in jeopardy. Canaccord Genuity's Tony Dwyer warns the S&P 500 just hit a level that sets the stage for another meltdown as the country copes with the coronavirus impact.
"We put 2,575 as a level for this relief rally," the firm's chief market strategist told CNBC's "Trading Nation".
The S&P 500 is coming off its biggest three day gain since 1933. On Thursday, it closed up more than 6% to 2,630. However, it's still almost 23% off its record high.
Dwyer cites human nature of fear as the likely catalyst to interrupt the latest leg higher.
"Once you make a panic low, you typically have this relief rally," Dwyer said. "Unfortunately, the vast majority of time you go back down and test that low."
But his forecast isn't all doom and gloom. It carries optimism, too.
"You've already panicked, so down 34% at the low to say that it's going to get significantly worse is not the case," he added. "The time to be cautious was in January and February. We made the panic low. While we may test that low, it's not the time to get scared."
Dwyer, a long-term bull, has warned for weeks the coronavirus pandemic would spark a deep economic shock.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
