Charles Nenner Provides His Key Support Levels for the Stock Market
Technical analysis guru Charles Nenner, founder of the Charles Nenner Research Center, provided his latest outlook to CNBC’s Maria Caruso Cabrera and Bill Griffeth yesterday.
Nenner reminded viewers of his call to “go totally long the market” in early 2009. He said he recently exited the market about six weeks ago when the S&P 500 hit 1,510 and he was looking for a topping pattern until the end of April, and added, “it would be a little early here for it to sell off.”
Griffeth pulled up Nenner’s key numbers for a breakdown which included the Dow falling below 14,545, S&P 500 futures below 1,544, and NASDAQ 100 futures below 2,751. Griffeth then asked Nenner how he arrived at these numbers. Nenner explained he developed a system in which numbers don’t move at random; “something happens on a certain day, certain week, and at a certain level,” he stated.
The CNBC hosts asked Nenner why he focused on futures versus cash/spot numbers to which he provided an obtuse answer, but clarified, “the Dow is a cash number.”
Cabrera asked Nenner how long it would be before we know the answer to where the market is headed. Nenner said don’t expect a sell-off until May, but the market may give the highs a new try. He added we’re in very dangerous territory and people don’t realize what could happen.
Griffeth pressed Nenner for a number on the correction he foresees, to which he replied he forecasted the Dow would reach 5,000 by 2020 so this would take a couple of years and the chances investors would make money here are very small.
Early last month, Nenner told Bloomberg’s Trish Regan the Dow would fall to 5,000 in 2017-2018 and the bottom for the cycle on AAPL was $360 [link].