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Stock market: A pullback may still be coming, analysts say

Traders work on the floor of the New York Stock Exchange.
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Despite some recovery from a washout that sent the to a two-month low, technical analysts are expecting further pullback in the volatile market.

"Momentum post-Brexit (is) starting to deteriorate," said Baird Investment Strategist William Delwiche, who focuses on technical trends. He referred to the period since late June when the United Kingdom rattled markets by voting to leave the European Union.

He also pointed to excessive optimism and a breakdown in short-term market breadth, or the portion of the stocks in the index that are showing a positive trend. "We need to see those patterns reverse," he said.