- The stock market may have bounced back from its sharp sell-off at the beginning of October, but Morgan Stanley (NYSE:MS) says the selling will pick back up soon.
- The firm expects the S&P 500 to slide back below the 200-day moving average, a key technical level.
- Tread carefully in tech and consumer discretionary, Morgan Stanley warns.
The stock market may have bounced back from its sharp drop at the beginning of October, but Morgan Stanley says it’s time to buckle up because the “rolling bear market has unfinished business with the S&P.”
“We think attempts to rebound were more short lived than sustainable,” a Morgan Stanley team led by the equity strategist Michael Wilson said in a note sent out to clients on Monday.
