With the Federal Reserve meeting this week, stocks could be volatile, and technical analysts say the S & P 500 looks increasingly set for a retest — and possible break — of its June low.
In the past week, t he S & P 500 declined 4.8%, closing at 3,873, in its worst weekly performance since June.
Wald now says a dip to 3,500 on the S & P 500 is possible.
Jonathan Krinsky, chief market technician at BTIG, said the 3,900 level was important and the area on the S & P 500 where the most volume traded over the last three years.
The Oppenheimer technical analyst notes that the S & P 500 has typically bottomed around Oct. 9, before launching into a strong rally into year-end, based on the average composite of the last eight mid-term election years.