Another night, another lock-limit down on the stock futures with the historically extremely rare event of the Globex futures reaching the 5% down limit becoming more of the norm lately. As economic conditions continue to deteriorate rapidly and the Fed pulling out all the stops. cutting rates to near zero today with the second emergency rate cut in less than 2-weeks, I figured this would be a good time to start sharping my pencil on some of additional downside price targets for the major stock indexes.
The SPY weekly chart below lists my minimum bear market target around 212 on SPY with a current maximum target around 180, subject to revision depending on how the charts & fundamental outlook for the economy develop going forward.
SPY weekly March 13th close
The weekly chart of QQQ list some of the near-term as well as longer-term price targets, although the term “longer-term” is essentially larger in the expected price drop more so in the time that is may take to get there, as stocks tend to fall much faster than the rise during a correction or bear market. The next couple of (approximate) support levels on QQQ are 172.90 & 157.30 with a minimum bear market target around 143.68 and a current maximum target around 113.37.
QQQ weekly March 13th close
Should anything material in the technicals (charts) and/or fundamentals change before then, I’ll do my best to point those developments asap but as of now, the trend in the stock market clearly remains bearish as does the fundamental outlook for the foreseeable future.