Ralph Acampora Sees a Stealth Bear Market
Acampora noted the recent weakness in the small cap stocks and stated the large caps would soon follow the small caps down, although not as severely.
Acampora said the Russell, S&P Midcaps, NASDAQ and SOX (semiconductors) were all within 2% of breaking critical support.
Acampora stated there was a melt-up at the beginning of the year and stocks like Facebook and Amazon got way ahead of themselves. The market isn’t close to unwinding that excess, Acampora added.
Acampora sees the S&P 500 correcting between 10 and 15 percent between now and October, while the 4th quarter will be “very, very strong.”
Regarding the small and mid-cap indexes, along with the NASDAQ, Acampora predicted a 20 to 25 percent bear market, referring to it as a “stealth bear market.”
Acampora explained that the last time he observed something like this was in 1994.
Back in October, Acampora correctly predicted the Dow would rise to a level of 16,500 to 17,000 before the end of the year [link].