S&P 500 Forecast: Now officially in correction, Mike Wilson says index will end year at 3,900

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• S&P 500 loses 2.53% in final full week of October, its second consecutive week of +2% decline.
• Morgan Stanley’s Mike Wilson reiterates call for S&P 500 to fall another 5% to close year at 3,900.
• S&P 500 RSI drops to oversold territory at 29 last Friday.
• Fed FOMC meeting on Wednesday expected to keep rates unchanged.
• Apple, Starbucks, Caterpillar, Pfizer and AirBNB all report earnings this week.

The S&P 500 index opened higher on Monday as the market hopes the more attractively-valued index can rally following two consecutive weeks of greater than 2% losses. Last week’s dismal performance that subtracted 2.53% from the index pushed the S&P 500 into oversold territory on the Relative Strength Index (RSI), as well as creating an official correction (-10% from the recent high).