via bullsnbears:
S&P 500 is likely to shift its direction in the coming days and likely correct 10% in the coming 3 to 6 months, Wells Fargo equity analysts told clients in today’s note.
S&P 500 Futures are trading modestly higher in pre-market Tuesday and “within spitting distance of our 4200 SPX target,” say the analysts.
Wells Fargo economists expect the U.S. to enter a recession in the second half of this year.
“We are maintaining our 2023 SPX price target of 4200, but believe the risk/reward over the next six months is skewed to the downside. Over the next 3-6 months, we expect to see a 10% correction, with the SPX trading down to 3700,” the analysts added.
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