Zak Mir, technical analyst at shareprofits.com, joined Tip TV, along with Mike Ingram, strategist for BGC partners, to discuss the outlook on the S&P 500.
S&P questioned over 2050 level
Mir outlines how the S&P 500 is once again unwinding down towards the floor of its sixth month range, and if it was to break the floor we could a downside moving to 1950/1980. Mir noted the problems breaking this floor could bring, but the S&P has bounced from the floor before and the index is expected to bounce back again.
S&P faces massive dispersion across sectors
Ingram noted the variation of numbers across the S&P sectors, highlighting the healthcare YTD standing at +9.1%, and the Mining and Metals Index YTD, seen to be at -35.4%.
Impact of China on the S&P
When Mir posed whether China was a factor or a new leg down for the S&P, Ingram replied that he believed China to be a new leg down lower, with the commodity squeeze being so bad, he believes it is impacting the commodity stock cash flow.