(Bloomberg) — Stocks struggled to make headway, following a furious rally that put the market within a striking distance of its all-time highs.
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A drop in equities interrupted what would have been the S&P 500’s longest winning streak in 20 years. In stark contrast to the “extreme negative momentum” during the panic selling of early August, “euphoria” has taken hold. In only eight days, the US equity benchmark added almost 8%, with positioning returning to extended levels. Just last week, nearly $16 billion in new long bets were added to S&P 500 futures, according to Citigroup Inc.
In another sign that bullishness has been in overdrive, Bank of America Corp. clients doled out $2.7 billion for US equities during the best week of the year for the S&P 500, with smart money leading inflows. And Goldman Sachs Group Inc. recently said that so-called trend followers were “no longer a headwind” — and…
