BofA Technical Analyst: ‘Eerily Similar’ Pattern Means The S&P 500 Could Head For 935

Mary Ann Bartels

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For months, Mary Ann Bartels has warned of the likelihood of a sharp drop in the S&P 500.And she’s not backing down.

Bartels, Bank of America’s Head of Technical and Market Analysis, is out with a new note (via Zero Hedge) titled “Santa is not coming.

From her note:

Last week the S&P 500 fell below its 50-day moving average which is the new level to watch – 1228. A failure to move above and hold the 50-day moving average confirms to us that we have already begun to enter the phase of testing the October lows near 1100-1074.

This pattern is becoming eerily similar to 2008 into 2009. A base building process has been underway since August but we have maintained the belief that the lows still need to be tested and undercuts to 985- 935 are possible (50% probability) as part of this process. We expect a new cyclical bull market to emerge near 2Q12. Time and patience are needed.

Bofa Chart

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