Ralph Acampora, the Wall Street veteran who for more than four decades has been at the forefront of technical analysis, is not looking forward to the next five months.
The senior managing director at wealth management firm Altaira believes that stocks have gotten overextended and will have a bumpy road ahead of them with the S&P getting slammed with a double digits drop from where the index is trading today.
On Thursday’s “Futures Now” Acampora predicted that the S&P 500 would decline “10, maybe 15% between now and maybe October,” but said it would be much worse for small caps, mid-caps and tech stocks.[via CNBC] “If you ask me about the Russell and the Nasdaq Composite and the S&P 400, I think you are talking about 20, 25%. And I call it a stealth bear market going on.”
Acampora, who is often referred to as the godfather of technical analysis, also said he’s reminded of the way markets were behaving 20 years ago.
“The last time I saw anything like this was in 1994, when the Dow and the S&P were in a 10 percent trading range all year, and then under the surface they were just ripping them apart. I have a sick feeling that we might be doing that again,” he said.