S&P 500 May Retreat 12% From October High: Technical Analysis

(Bloomberg) -- The Standard & Poor’s 500 Index may extend its retreat from a one-year high last month to 12 percent, according to Oppenheimer & Co. The benchmark for U.S. equity may drop to its average close of the past 150 days, said Carter Worth, Oppenheimer’s chief market technician. That level, at about 963 points, represents a 7.6 percent decline from yesterday’s close of 1,042.88 and a 12 percent retreat from the index’s one-year high on Oct. 19, according to Bloomberg data.

The biggest advance in U.S. equities since the Great Depression has stalled on speculation that the seven-month rally outpaced prospects for an economic recovery. The S&P 500 dropped 4 percent last week, falling the most since May and closing below its 50-day average for the first time since July, after reports showed new home sales missed economists’ forecasts and consumer spending declined.

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