‘Overheated Momentum’ Doomed Stock Market to Quick Reversal
- Bullish positioning, stretched levels set stocks up for pause
- Expect ‘short-term consolidation’: Bloomberg Intelligence
Source: Getty Images
This article is for subscribers only.
In a stock market inundated with retail investors rushing in to buy anything that moves, the swift reversal we’re seeing was more or less inevitable.
That was the warning from Bloomberg Intelligence’s Gina Martin Adams 48 hours ago, just as the S&P 500 Index embarked on what seems likely to be a three-day decline, the longest losing streak since early March. In her view, investors were too optimistic and sentiment was running hot, a recipe for a pullback.