This rebound is a ‘bump in the road on the way down,’ says strategist predicting ‘Lehman-like’ drop

The S&P 500 pulled off its most dramatic intraday turnaround this year on Tuesday, extending the rebound from its worst day of 2019, but investors shouldn’t be too optimistic about the comeback, Nomura warns.

The rebound, supported by dip buying and technical positioning by speculative traders, is bound to be a short-lived one as market sentiment continues to deteriorate, according to Nomura macro and quant strategist Masanari Takada. He garnered much attention this week for his call for a “Lehman-like” sell-off as soon as late August.

“We…