The possible silver lining: Investors may have found a contrarian indicator pointing to a bounce.
“Anytime you get to extremes like these, they become more of a contrarian indicator,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott.
“The more people start jumping on the bandwagon going lower … the sooner we can get on a rally mode,” said Bruce McCain, chief investment strategist at Key Private Bank.
“I think one of the concerns we have is that we haven’t heard the negativism you’d hear if we’d hit the bottom,” he added.
Nonetheless, Luschini said investors should be careful when weighing these data. “Just because they are at historical lows, … it doesn’t mean they can’t go lower,” he said.
On Tuesday, U.S. stocks gave up most of an aggressive early rally by midafternoon. The Dow Jones industrial average gained as much as 183.88 points at its high, while the S&P and the Nasdaq composite both rose more than 1 percent, before paring gains.