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- Red alert for US stocks with ‘very high’ chance of severe fall, warns HSBC
Red alert for US stocks with ‘very high’ chance of severe fall, warns HSBC
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Loading..."The possibility of a severe fall in the stock market is now very high," warn technical analysts at HSBC, who have dialed up the bank's outlook for U.S. stock markets to "red alert" following an aggressive wave of selling.
The warning heightens the note of caution in HSBC's tone from a September 30 report in which the bank issued a lower rated "orange alert", pointing to similarities between Dow Jones Index trading patterns seen just prior to the 1987 "Black Monday" stock market crash and now.
The note highlights 17,992 points for the Dow and 2,116 points for the S&P 500 as the critical pivot points to watch for signs of a broader capitulation.
"As long as those levels remain intact, the bulls still have a slight hope. But should those levels break and the markets close below (which now seems more likely), it would be a clear sign that the bears have taken over and are starting to feast," the note, authored by Murray Gunn, head of technical analysis.
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