S&P 500 declines but outlook “constructive”

The S&P 500 fell 1.4 percent last week.

There was considerable volatility throughout the week. The S&P 500 fell 4.0 percent on the first three days, then recouped some of those losses over the last two days.

Analysts mostly remain optimistic.

“I think the fact we bounced at the end of the week is constructive,” said Art Hogan, chief market strategist at National Securities.

“The S&P 500 held the 50-day moving average, which is constructive,” said Scott Redler, chief strategist at T3Live.com. “The tech sector, which has been under pressure, held its yearly uptrend earlier in the week.”

Victoria Fernandez, chief market strategist at Crossmark Global Investments, noted that investment-grade and high-yield credit spreads were not flashing any warning signs.

“That’s saying the credit market is not concerned right now,” said Fernandez.