Tags: Yamada | stock | pullback | S&P500

Technical Analyst Yamada: Stock Pullback Has Longer to Run

By    |   Wednesday, 09 April 2014 10:55 AM

The S&P 500 rebounded 0.4 percent Tuesday after sliding 2.4 percent during the previous three sessions. But Louise Yamada, who has her own technical research firm, doesn't think the downdraft is over.

"I think that it's an interim pullback, and we've certainly seen what we've expected in the Internet and biotechs coming off," she tells CNBC. "I think that although they may bounce, there's probably still a little bit more to go on the downside or at least have those stocks stabilize."

The selloff could carry over to other sectors, such as aerospace and consumer discretionary stocks, Yamada notes.

Editor's Note:
250% Gains Bagged Using Secret Calendar (See Video)


"What we're concerned about is whether some other stocks that have gone straight up are starting to move sideways, either in a consolidation or in preparation for some distribution," she adds, referring to a pattern that signals a market top. "It's a little iffy here."

For the S&P 500, 1,750 is a key support level. "If we break that level, that will be the first lower low that we would have seen all the way back to 2011," Yamada argues.

The index closed at 1,851.96 Tuesday.

She believes 2014 is going to be a "bumpy road," but adds, "The one positive, of course, is that 2015, as a year ending in 5, has a very good record of being an up year. That's the silver lining."

Meanwhile, Tobias Levkovich, chief equity strategist at Citigroup, said the market's decline represents a correction, not the start of a bear market. "To a great degree what we've seen is high-growth momentum stocks reversing direction," he tells Yahoo.

Some market participants have overreacted to the selling, Levkovich maintains, noting that much of it represents investors shifting to large-cap stocks from small-caps and to value stocks from growth stocks — a flight to quality.

Editor's Note: 250% Gains Bagged Using Secret Calendar (See Video)

© 2021 Newsmax Finance. All rights reserved.


InvestingAnalysis
The S&P 500 rebounded 0.4 percent Tuesday after sliding 2.4 percent during the previous three sessions. But Louise Yamada, who has her own technical research firm, doesn't think the downdraft is over.
Yamada,stock,pullback,S&P500
319
2014-55-09
Wednesday, 09 April 2014 10:55 AM
Newsmax Media, Inc.
 
Newsmax TV Live
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved