Morgan Stanley's Strategists See Some Breathing Space From Current Market Selloff: Bloomberg

Bloomberg reported that Morgan Stanley MS strategists led by Michael Wilson say the S&P 500 Index might rally another 5% to 7% before the selloff resumes.
“We think US equity markets can rally further,” they wrote in a note.
The decline in bond yields and oil prices have eased some concern around inflation and helped the benchmark break a three-week falling streak.
Wilson correctly predicted this year’s selloff and said a retracement of 38% to 50% of the entire decline “would not be unnatural or out of line with prior bear market rallies.”
Wilson warned about the fears of an economic slowdown driving fall in oil and yields, resulting in more declines for the stock market.
Wilson sees the S&P 500 bottoming between 3,400 and 3,500 index points in his base case, down almost 13% from its latest close. And a recession would send the index more than 23% lower to about 3,000.
“The bear market is likely not over, although it may feel like it over the next few weeks as markets take the lower rates as a sign the Fed can orchestrate a soft landing and prevent a meaningful revision to earnings forecasts,” the strategist said.