S&P 500 falls to two-year low, bear market rally stifled

Analysts are still looking for signs of capitulation by investors who have exhausted selling pressure. But this year’s sell-off didn’t include all of those factors — a sharp drop in price, an unusually high day’s volume and 400 CBOE Volatility Index to or above. As a result, many investors have concluded that selling has not been exhausted. ” it’s going to drop, you’re going to get some decent volume, but you don’t necessarily have the typical signs of capitulation, said Brian Jacobsen, senior investment strategist at Allspring Global Investing in Menomoney Falls, Wisconsin. “Maybe enough has changed over the years that some of these metrics won’t be a good one for the future guidance.”

That leaves investors looking for the next catalyst to help the market stabilize or get cheap enough to start buying again, such as signs that Fed actions may start to dampen inflation, labor market weakness and what the upcoming corporate earnings season could bring. ” On (October 7th) you will receive an employment report and the following week you will receive Until the inflation report, so we’ll wait and see what the numbers say and then you have income,” Jacobson said.