Thursday's sell-off is a buying opportunity as key support levels remain in place, according to Fundstrat. "Markets intra-day reversal doesn't take away from technical thinking that a near-term low is likely in place," Mark Newton, the firm's technical strategist, said in a note. "Some positives are in place that suggest a larger bounce lies right around the corner.
35% — it's biggest one-day loss since Aug. 2. .SPX 5D mountain Big sell-off for the S & P 500 on Thursday Still, Newton noted that the reversal didn't test 4,335 — an intraday low seen Aug. 18. He also highlighted that market breadth has improved since then, and that over the same stretch the Nasdaq-100 managed to break out of a July downtrend. "Bottom line, Thursday's reversal wasn't severe enough to call for a pullback to new monthly lows," Newton said.