Strategist Sees S&P Sliding 3% and SanDisk Facing Deep Pullback
BTIG strategist Jonathan Krinsky warns the S&P 500 could slide roughly 3% to its 200-day average near 6,582 if it breaks decisively below 6,700 after two recent downside tests. Memory manufacturers including SanDisk formed a small top and face significant downside before reaching meaningful support.
1. Market Break Point and Downside Risk
Bethesda-based strategist Jonathan Krinsky notes the S&P 500 held above 6,700 despite a surge in oil from $67 to $92 per barrel and a nonfarm payrolls print of -92,000 versus the 55,000 consensus. He warns that a decisive breach of 6,700 could open the door to a roughly 3% decline toward the 200-day moving average at 6,582.
2. Energy Extremes and Credit Conditions
WTI crude traded as much as 45% above its 200-day average, a level seen only during the Gulf War and early Russia-Ukraine conflict rallies. At the same time, investment-grade credit spreads widened to their weakest levels since last spring and private credit concerns intensified, potentially compounding equity downside.
3. Memory Stocks Vulnerability
Within semiconductors, memory names including SanDisk, Micron, Western Digital and Seagate have formed small peaks with “a long way down” before meaningful support levels. This places SanDisk among the most precarious areas of the chip sector, with software stocks poised to outperform in the coming months.