Making the case for a bear market rally, not a new bull run: Morning Brief

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Thursday, August 18, 2022

Today’s newsletter is by Jared Blikre, a reporter focused on the markets on Yahoo Finance. Follow him on Twitter @SPYJared.

After a nearly 25% rally off the June lows, the Nasdaq Composite (^IXIC) took a step back Wednesday with its worst day in nearly three weeks.

And while it’s too soon to throw in the towel on this two-month rally, there’s a growing chorus of Wall Street strategists warning stocks have come too far too fast, and are due for a pullback.

Worse yet, some professional money managers expect a test of the 2022 lows with significant downside follow through should they break — which could amount to a drop of 25% from current price levels.

Katie Stockton, founder at Fairlead Strategies, recently joined Yahoo Finance Live to give some longer-term context to the current bullish moves. Stockton is…

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This article was written by and originally published on finance.yahoo.com