[credit provider=”Bloomberg” url=”http://www.bloomberg.com/apps/quote?ticker=SPX:IND”]
Most of the folks who were dead wrong for years after the market low in March 2009 (see chart at right) have quietly given up, but at least one analyst is still calling for stocks to crash through those financial-crisis lows.United-ICAP senior technical analyst Walter Zimmerman thinks the S&P 500 will nose a bit higher in the early part of 2012 and then drop about 60% to 579.57, Tomi Kilgore of the WSJ reports.
(That’s 579.57–not 580 or 550 or 600).
This crash will take the form of a “sharp and sustained drop” through December.
Unlike some technical analysts, Zimmerman does invoke some fundamental logic for his call: Europe.
“If the history of debt tells us anything it is that one cannot solve a debt crisis by lending more money to the bankrupt and the insolvent,” Zimmerman says.
And he’s certainly right about that.