Change is difficult. Ask anyone who watched the straight-up summer stock rally turn chaotic this month. But whether this transition is destined to last remains a point many investors dispute.
The S&P 500 just strung together its two worst weeks since March, shattering calm that had largely prevailed for five months. A closer look at market trends -- particularly its ability to hold above levels that denote upward momentum -- suggest what has happened can be categorized as a correction to prevailing froth rather than a full-blown reordering of sentiment.
To wit: even with a decline of almost 7% over five sessions through Thursday, the S&P 500 managed to hold firm above its 50-day moving average, a feat not seen since 1934. Similarly, for the first time since the dot-com era, the Nasdaq 100 suffered a 10% correction within a week without breaching its 100-day average.