© Reuters. ‘Nowhere to Find’, ‘Bloodbath’: BTIG’s Krinsky Now More Convinced S&P 500 Will First Go to 3400-3500 Than 4200
BTIG’s Jonathan Krinsky believes that the is now closer to 3,400-3,500 than 4,200 after yesterday’s price action.
The S&P 500 fell 4.04%, lost 4.73% while the closed 3.57% lower in another bloodbath. The trigger was Target’s (NYSE:) shocking that sent shares 25% lower.
“There’s not much else to say about today’s action other than it was a bloodbath,” Krinsky told clients after market close.
He said investors are taking cash out of the market, instead of rotating between sectors.
“We had thought a counter-trend rally to 4,200 would make sense, but given today’s action, our conviction that the SPX tests 3,400-3,500 before this is over is now higher than our conviction for a rally to 4,200. While it won’t be a straight line, today is confirmation that selling rallies in bear markets is much easier than buying dips,” he added.
By Senad Karaahmetovic
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