Investors who watched the Dow Jones Industrial Average swing from a 567-point deficit at its low Tuesday to close up 567 points on the day probably hoped the worst of this selloff was over.
But the technician who predicted back in January that a big correction was coming has four words of advice: don’t be so sure.
Craig Johnson, chief market technician for Piper Jaffray in Minneapolis, who called the current bull market back in 2012, told this column on Jan. 11 that the S&P 500 index US:SPX could decline by as much as 20%, primarily because rising yields on 10-year Treasury notes BX:TMUBMUSD10Y heralded the end of the 35-year bull market in bonds.