The S & P 500 is coming off its worst week of the year, and chart analyst Katie Stockton sees even more pain ahead. Fairlead Strategies’ founder told CNBC’s ” Squawk Box ” she sees the S & P 500 falling to around 5,300 before regaining its footing. That’s 8.1% below Friday’s close of 5,770.20. “We have very weak momentum, and it’s evident behind the market. And if you take a step back and look at the major indexes, they look like a double-top formation in the shape of an M, and that’s not a good sign,” Stockton said. The S & P 500 last week fell 3.1%, its biggest weekly decline since September. The Dow Jones Industrial Average and Nasdaq Composite also suffered steep losses last week, dropping 2.4% and 3.5%, respectively. .SPX YTD mountain SPX year to date Those declines come as fears of an economic recession pick up steam, with the Trump administration moving forward with tariffs on goods from China, Canada and Mexico. Levies on some goods from Canada and Mexico are exempt until April, but increased duties on Chinese imports have already gone into effect. The uncertainty around tariffs has pushed investors out of riskier assets like stocks and into safe havens such as U.S. Treasurys. Earlier this year, the yield on the 10-year Treasury note hit a high of 4.89%. Since then, it has dropped to 4.22%. (Yields move inversely to prices). Gold, another perceived safety hedge, hit a record at around $2,974 per ounce last month and remains above $2,900. One possible silver lining? Friday’s stock market gains after the Fevruary jobs report could mark the beginning of a rebound, according to BTIG chief market technician Jonathan Krinsky. “NFP days have often marked inflection points over the last year. We think tactically, at least, Friday once again marked a turn before a rally takes hold,” he said, referring to the non-farm payroll report. “SPX is oversold and showing downside exhaustion signals, while small-caps are down six weeks in a row, a streak seen only four other times since 2000. They have never been down seven weeks in a row.” Elsewhere Monday morning on Wall Street, Piper Sandler upgraded Samsara , a Cloud software provider that helps businesses build an Internet of Things connecting sensors and other devices, to overweight from neutral, calling for a 40% pop after a post-earnings sell-off last week . “Expectations have been high for Samsara the last +6 months and, following FQ4′s print, have largely been reset as investors are realizing +30% is not likely to be sustained,” analyst James Fish said. “However, we think +20% is easily obtainable over the next few years.”
