In One Chart: Still a bear market: S&P 500 slump signals stocks never reached ‘escape velocity’

The S&P 500’s close below 3,900 on Thursday signaled the stock market’s rally off the October lows was merely a “tactical bounce,” according to a top Wall Street chart watcher.

“The market’s 20-day low, a break of 3900 on the [S&P 500] SPX, suggests that the latest leg from October’s CPI report through Wednesday’s CPI report was nothing more than a tactical rally,” said Jeff deGraaf, chairman and head of technical research at Renaissance Macro Research, in a Friday note (see chart below).

“It…