(Bloomberg) -- The “bear market” rally that has lifted the Standard & Poor’s 500 Index 47 percent since March 9 may be over, according to a technical analyst at Aurel bgc.
The S&P 500 may pass under an intermediate support of 992.50 points and then accelerate down toward the support of 969 in the coming trading sessions, Alexandre Le Drogoff, an analyst at Aurel in Paris, wrote in a note today. “We expect a progressive return to a down market,” he wrote.
The S&P 500 yesterday lost 1.3 percent to 994.35, its worst drop since July 7. The index broke the psychological key threshold of 1,000 points driven by a so-called black candle, a sign of negative sentiment, of 11 points, Le Drogoff wrote. The index last week rose above 1,000 for the first time since November, as better-than-estimated employment, manufacturing and home-sales data boosted confidence that the worst of the recession is ending.
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