FXStreet reports that economists at Morgan Stanley apprise that ending the year at around 2750 for the S&P 500 would imply lingering issues beyond a garden-variety recession that currently seem unlikely.

“We still think that 2750 may be a reasonable year-end bear case for the S&P.”

“We've been watching 2550-2600 as a level for the S&P in an overshoot—a level the S&P has already traded below. Further investor reductions in gross exposure could push the liquidity-driven overshoot further than we expected.” 

“For investors with a 6-12-month horizon, the 2550-2600 level may offer an attractive risk-reward buying opportunity.”