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The shampoo theory of stocks

Photo: Drew Angerer/Getty Images

This is a smart way to think about last week's stock shock: "Here’s Why More Scares Are Ahead for the Stock Market, by Ben Levisohn of Barron's.

What we're reading: "When stocks bounced on Friday, it delayed a true washout, but there are likely to be more scares, more drops, more pain, before stocks start heading higher again. 'The process can look like a shampoo commercial,' says Christopher Harvey, head of equity and quant strategy at Wells Fargo Securities. 'Lather (selloff), rinse (rebalance), and repeat.'"

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