another equity selloff is brewing as a warning from snapchat’s parent has triggered broader panic with fears snap is the next canary in the coal mine for tech or it just may be another excuse to sell monday’s rip a strategy bank of america recently advised as it believes full capitulation is some ways off getting knocked down along with tech stocks this year have been the smaller companies which are pricing in a “nasty recession and decline worse than many bear markets” notes a team of jefferies strategists led by steven g desanctis the russell 2000 rut is down 20 yearto date not too far off a 26 drop for the nasdaq composite comp  much like the nasdaq the russell is in the grips of a technical bear market down 26 from a november 2021 alltime high “it just keeps getting worse for smallcaps with performance from the peak worse than the average recession and even worse than the average pullback this has pushed our absolute valuation model back to fair value when just 15 months ago it was in the 100th percentile” desantis tells clients in a note jefferies notes its relative valuation model is now at levels not seen since 2003 while it has been waiting for another shoe to drop in the form of earnings estimates following gloom from retailers that has yet to happen desanctis said the team is seeing as many upward as downward revisions in the sector and it was probably “too aggressive” in cutting its 2022 russell yearend target to 2080 and earnings growth to 13 in our call of the day the jefferies team argues that this hardhit group of stocks has been unduly punished by a “baby with the bathwater” reaction by investors and the team offers a dozen or more stocks it thinks could be poised for a bounce that isn’t all sectors of course and jefferies is steering clear of secular growth as estimates keep falling cyclicals are a different story exiting a bear market “these stocks hang with growth they continue to see better revision trends and ’22’s estimated growth now stands at over 18” said desanctis neither is the team leaning toward bond proxies such as defense stocks “valuations are well above their longterm averages driven by big inflows into these sectors and of course the group tends to lag when the bear goes back into its cave” the team says and don’t bail on stocks with overseas exposures as the team thinks china is closer to ending lockdowns even though beijing had some gloomy covid19 news this week with plenty of resources to stimulate their economy “we think this could be like the second half of 2016 when higher overseas exposed names beat the index by over 6 in the back half of the year” said desanctis as for the buyrated names the team has 14 that have “fallen harder than the index but did not miss numbers nor see a cut in their estimates” at the top are sonos draftkings aptiv floor  decor and coty opinion ‘i feel like i am reliving the summer of 2008’ strategist david rosenberg sees bear market sinking the sp 500 to 3300 snap snap is slumping 30 after the socialmedia group said it would likely miss quarterly estimates due to a “further and faster than anticipated” deterioration of the economy it is also hitting the rest of the internet sector facebook parent meta platforms fb  pinterest pins  alphabet googl and twitter twtr  fed chair jerome powell later is due to give remarks at a native american development conference at 1220 pm eastern time with new home sales due at 10 am eastern meeting with big financial institutions the people’s bank of china and china’s banking regulator urged lenders to “go all out to stabilize the fundamentals of the economy” jpmorgan and ubs have both downgraded china’s economy recently best buy bby and nordstrom jwn will report ahead of the open followed by intuit intu and agilent technologies a after the close stock futures es00 ym00 nq00 are pushing lower with bond yields ty00 tmubmusd02y also drifting south oil prices under pressure and the dollar dxy getting some bids along with gold gc00  the latest in the hunt for stockbottom rationale comes from stifel’s chief equity strategist and veteran market watcher barry bannister who says he is watching for deteriorating corporate credit to signal further stock downside “tighter financial conditions have unwound the froth but corporate credit is the downside risk and upside needs a fed pause” he tells clients in a note read when will stocks find a bottom treasury yields need a footing first says this strategist these were the topsearched tickers on marketwatch as of 6 am eastern big crowds turned out in london to hop on the new elizabeth metro line for the rest of us mortals high gas prices may mean holidays in our heads only need to know starts early and is updated until the opening bell but sign up here to get it delivered once to your email box the emailed version will be sent out at about 730 am eastern want more for the day ahead sign up for the barron’s daily a morning briefing for investors including exclusive commentary 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