Markets mixed as pullback seen having further to go

Markets were mixed on Monday.

The S&P 500 fell 0.6 percent, the STOXX Europe 600 rose 0.1 percent and the Nikkei 225 plunged 1.9 percent.

While many analysts remain sanguine, some think that the current stock markett pullback has further to go.

“More time and downside tests may be needed for a firm market low,” said Stephen Suttmeier, a technical research analyst at Bank of America Merrill Lynch.

“We find it unlikely there will be a V bottom given the sharpness and breadth of the correction,” said Tony Dwyer, chief market strategist at Canaccord Genuity.

Michael Santoli at CNBC said that “the pain trade is to the downside — or, perhaps most diabolically, up first and then down harder”.

Santoli quoted Jeff deGraaf of Renaissance Macro Research as saying that “the playbook would be to see equities bounce further, challenge a new high (if not make one) before puking again”.