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Retail investors aren't convinced the stock market rally is over. Here's why

Bloomberg
Bloomberg9/12/2020 12:22 PM GMT+08  • 5 min read
Retail investors aren't convinced the stock market rally is over. Here's why
The S&P 500 just strung together its two worst weeks since March, shattering calm that had largely prevailed for five months.
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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.

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