Wall Street’s summer drop is probably not over yet.
Several analysts say that although the market has dropped sharply in the last few days, it still has a long way to go before it can reach a steady bottom. Even with the promotion today.
The S&P 500 sank more than 6% after a record high last month as the US-China trade war intensifies, prompting investors to submerge stocks for safer assets such as bonds and gold. The sharp decline pushed the indexes through key technical areas and left a breakthrough in the massive rally.
“This is a correction of an uptrend that has not yet ended,” said John Roque, technical analyst at Wolfe Research.
Trader Aleksandar Kumanov