S&P is bottoming out, says technical analyst

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The S&P 500 (^GSPC) is bottoming, says a technical analysis expert.

“It’s always precarious at the end of a bear market, a market that is trying to move from bearish to bullish, so to speak. And our call and our charts continue to suggest that’s exactly what’s going on here, that the S&P is bottoming,” Rich Ross, Evercore ISI senior managing director of technical analysis, told Yahoo Finance Live.

The S&P 500 had a massive 4% drop earlier this week. The S&P closed below 3,900 on Thursday and went even lower on Friday.

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“Keep in mind that we’ve been technically spoiled in recent years that we’ve had these V-bottom reversals after sharp dips, as we saw in February, March 2020, with the pandemic plunge as it were, and again in 2018, with that Powell rookie mistake where we just stuck our cleat in the turf and turned back in the other direction,” Ross said.

“This is more of a traditional bottom in the absence of that proverbial Fed pit. But it’s definitely a low,” he added.

S&P 500 heavyweight Apple (AAPL) is down about 16% so far, outperforming the broader market. On Friday, the tech giant’s stock floated below the $150 level.

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“There’s 7% of S&P that I don’t worry about going to bed every night, and that’s Apple computer,” said Ross, who believes the tech giant could hit a new high in 2023.

“That $150 [per share] Again, I think we’ve got that $150, and Apple is back on track. I think Apple will hit a new high in the first quarter next year,” he added.

“And if 7% of the S&P can make a new all-time high, both relative and absolute in a bear market, that’s a pretty good starting point for a bearish to bullish reversal in the broad market,” he added.

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Ines is a market reporter for Yahoo Finance. Follow her on Twitter on @ines_ferre

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