Chartmaster David Keller shared the three biggest risks facing the market right now.A surprisingly strong rebound for US stocks after theof early March has run out of steam, and a veteran chartmaster warns that gains will be limited for the rest of 2023.
David Keller, the chief market strategist at StockCharts.com, said in a recent interview with Insider that the S&P 500 has just 6% upside right now — even in his bull case. His charts suggest the index will likely remain stuck in the same 3,800 to 4,200 range it's been in for over five months.David Keller, StockCharts.com
"Overall, I would say this is a market that's more retrenching and embracing for further choppiness and limited upside," Keller told Insider."I think that's the challenge."If the S&P 500 does snap out of the tight holding pattern it's been in, Keller said it's much more likely to retest its October low of 3,500 than make a push toward its all-time high of 4,818.
Stocks currently have an unfavorable risk-reward setup, and Keller said that a sharp selloff could come if one of three key events occur: