Stock Sound and Fury So Far Failing to Signify This Rally’s Doom

  • S&P 500, Nasdaq hold steady above 100-day average amid selloff
  • Retail money stays buoyant while hedge funds buy the dip
Markets Should Prepare for Higher Volatility: Northern Trust
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Change is difficult. Ask anyone who watched the straight-up summer stock rally turn chaotic this month. But whether this transition is destined to last remains a point many investors dispute.

The S&P 500 just strung together its two worst weeks since March, shattering calm that had largely prevailed for five months. A closer look at market trends -- particularly its ability to hold above levels that denote upward momentum -- suggest what has happened can be categorized as a correction to prevailing froth rather than a full-blown reordering of sentiment.