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Bottom for stocks may be in: Street

Trader on the floor of the New York Stock Exchange.
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Trader on the floor of the New York Stock Exchange.

Following a recent selloff in U.S. equities, market watchers believe a bottom may be in, clearing the way for stocks to continue their march higher.

Since reaching an intraday high of 2,103 on Tuesday of last week, the S&P 500 plunged as much as 11 percent over the next four sessions, hitting a low of 1,867 on Monday.

In the past two days, however, the S&P rallied a total of 6.4 percent, recovering most of its losses in the previous sessions and logging its best two-day gain since March 2009.

"Since 1940, we count 10 other periods when the S&P 500 fell by at least 10 percent in just four days. Afterward, it usually went up," said Barclays' head of U.S. equity strategy research, Jonathan Glionna, in a note to clients Wednesday.

Despite the increased volatility this week, Glionna also stuck to Barclays' year-end price target of 2,100 for the S&P, predicting a 6 percent gain from here.

As the rebound gains traction, the strategist thinks there are certain areas of the market that perform best during bouncebacks similar to the one in the past two days.

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