After first monthly decline of year, US stocks “clearly oversold”

The S&P 500 fell 2.6 percent last week, completing a 6.6 percent decline for the month of May, its first monthly decline of 2019.

A CNBC article, however, noted that the drop in May is normal for stocks.

The article cited Ben Carlson, director of institutional asset management at Ritholtz Wealth Management, as pointing out that 5 percent pullbacks in the S&P 500 have happened in 65 of the past 70 years.

Indeed, some analysts remain sanguine.

Sam Stovall, chief investment strategist at CFRA Research, said that “hefty” gains in the S&P 500 between January and April are “typically digested” in May, which is then followed by solid gains in June.

Craig Callahan, president at Icon Funds, said: “We’re clearly oversold and we’re finding good value.”

Still, LPL Financial noted that the S&P 500 has dropped more than 5 percent in May just four times in the past 50 years. Subsequently, the index has lost more than 5 percent in June on two occasions.