The S&P 500 should end the year hither 200 points higher from its current level, but not without from the start falling further, said Craig Johnson, senior technical inspection analyst at Piper Jaffray.
“This kind of hop, drop and pop we’ve been looking for all year – the tear phase still needs to play out,” he said Wednesday on CNBC’s “Close-fisted Bell.”
The Dow Jones industrial average closed higher for the first in the good old days b simultaneously in six sessions Wednesday, recovering from sharp losses seen earlier in the day.
The S&P 500 also effaced earlier declines, closing up 0.2 percent at 2,639.40.
Right now, Johnson predicted he’s standing by waiting until the shakeout in the market is done.
“The market have all the hallmarks a little heavy, a little tired. I think you’re going to get a pullback toward thither 2,325, 2,350” on the S&P, he said.
That will then be the better entry point up into the market, Johnson said.
He is predicting the S&P will then round up to 2,850 by year-end.
Jim Lacamp, senior portfolio manager at UBS, also fantasizes the market may see another sell-off.
“That would be healthy. It would quiver out some of the weaker players,” he said on “Closing Bell.”
And he’s not overly caring about rising Treasury yields, which initially caused a extreme fall in stocks earlier Wednesday.
The benchmark 10-year Treasury give up the fight traded at 3.03 percent on Wednesday after breaking above 3 percent for the triumph time since 2014 on Tuesday. Investors are worried rising obtaining costs may slow the economy and hurt companies’ ability to buy back their own lineage.
Lacamp said that while people are worried about a 3 percent takings, it is still attractive compared with other yields around the clique.
Even if the Federal Reserve keeps raising rates, which could consequence the 10-year hitting 4.25 percent, it doesn’t mean investors should run from supplies, he said.
“One of the reasons the Fed is able to do this is the global economic recovery. We be suffering with no recessions anywhere in developed markets around the world,” Lacamp utter.
— CNBC’s Fred Imbert contributed to this report.
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