S&P 500 could crash to 3,200 level: Katie Stockton
- Stockton reveals a key support she's watching on the S&P 500.
- She says the "$150" level on Apple Inc stock is also significant.
- The benchmark index is testing its June low on Friday.
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S&P 500 is trading near its June low on Friday but Katie Stockton (Fairlead Strategies) says there’s still a possibility of a further decline.
Benchmark index could lose another 13%
Copy link to sectionU.S. stocks took a hit this week after the FOMC raised rates by another 75 basis points and signalled a terminal rate of 4.60%.
If the benchmark index violates a key support, Stockton warned on CNBC’s “Squawk Box”, it’s unlikely to find a floor before the 3,200 level.
The support I’ve been watching is around 3,815. If that’s broken on a consecutive weekly closing basis, that would be a major breakdown and the next support level based on Fibonacci retracement would be around 3,200 level.
She, however, expects that price objective to take until 2023 to realise.
Stockton is closely watching the Apple stock
Copy link to sectionIn terms of individual stocks, the “$150” level on Apple Inc (NASDAQ: AAPL), Stockton said, was significant. A meaningful break below that price per share, she added, would be a negative catalyst for the broader market.
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Apple has been the stalwart performer. I think if it were to break down, that’s going to create a bit of a waterfall effect in that we’ll see underperformance then transferred to the higher growth names that’ve actually done relatively well.
Shares of the iPhone maker are trading right at $150 a share at the time of writing. Last week, it replaced Tesla Inc as the most shorted stock on Wall Street despite the launch of the iPhone 14. (read more)
“AAPL” is trading at a significant premium to the market.
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