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S&P’s Biggest Drop Was a Selloff Waiting to Happen

  • More stocks making lows while market hovers near all-time high
  • Similar patterns since 1972 almost always led to trouble
Bloomberg business news

BMO's Belski Says U.S. Stock Market Selloff Was Overdue

Is the market’s latest fit of nerves normal restlessness, or something worse? Based on an analysis that considers not political sensitivity but the breadth of share moves, don’t be surprised if it’s the latter.

Take the S&P 500’s bounce starting a week ago, in which the index recouped nearly all of the drop tied to tensions with North Korea. A problem arises when you look deeper into the rebound and see that it happened with the aid of a narrowing cohort of stocks, Sundial Capital Research says.