While investors wait for the sequel to last week's market sell-off, Goldman Sachs strategists think the worst of it already may have passed.
As Wall Street recovered from a nearly 6 percent sell-off from the most recent high in the Dow industrials that knocked more than 1,500 points off the blue chip index, Goldman's experts said solid fundamentals should help keep a floor for stock prices.
"We see limited further downside," David Kostin, the firm's chief U.S. equity strategist, said in a note. He added that the kind of pullback the market saw last week was common. "Despite the recent sell-off, equity fundamentals are strong and we remain constructive on the path of the S&P 500," he added.
Goldman's year-end price target for the S&P 500 is 2,850, which looked somewhat pessimistic when the market was breaking records but now points to 3 percent upside from Friday's close, and, perhaps more importantly, conviction that the market drop doesn't have much further to go.