The market rout may have reached levels that typically signify a snapback, according to BTIG’s Jonathan Krinsky, who uses charts to make buying and selling decisions. “This is your spot in our view for a tactical bounce,” the chief market technician told CNBC’s “Closing Bell” on Monday. Stocks tumbled Monday, extending their recent losing streak as elevated tariff uncertainty raised the likelihood of a recession. Many investors figure the move could mean the long-awaited stock market correction is finally at hand. At one point Monday, the S & P 500 was more than 9% off its record high. The broader index also tumbled below its 200-day moving average, a long-term indicator suggesting the bull trend is no longer intact. .SPX 1Y mountain S & P 500 – 1-year However, BTIG’s Krinsky said a number of “washout signals” that typically come later into a correction suggests this is a good spot for a near-term rally, including 80% of NYSE volume in declining stocks, as well as cracks in some of last year’s biggest winners such as Walmart. “There’s things that we didn’t have in place over the last couple weeks that now we’re starting to see,” Krinsky said. However, he does not expect the recent market slide to be over just yet. “To be clear, we don’t think this is the final bottom, but we think a tactical rally — 3%, 4%, 5% from here — makes sense,” Krinsky said.
