S&P 500: Sell-off may have burnt itself out - BBH

The S&P 500 lost nearly 5.2% last week after the sharp reversal ahead of the weekend, when it closed up 1.5% after being off 2.0% intraday, notes Marc Chandler, Global Head of Currency Strategy at BBH.  

Key Quotes

“Previously, we suggested potential toward the 100-day moving average, which was about 2632 at the time. The market cut through it like a hot knife through butter.  The 200-day moving average (~2539) was approached.  Below there, the 2478 area corresponds to a 50% retracement of the rally since US 2016 election. The kind of recovery seen before the weekend, reversing from new lows to fresh session highs in late turnover is the first sign that the sell-off may have burnt itself out.  The Russell 1000 Value Index fell 5.4% and the Russell 1000 Growth shed about fell about 4.9%.  The former is off about 3.75% for the year, while the latter is off a little more than 0.5%.”