The Brexit vote caught U.S. investors completely off guard and threatens to be a drag on corporate earnings for years to come. Yet, after an initial steep selloff, the SPDR S&P 500 ETF Trust SPY has rebounded and is now down less than 1 percent since the news.

What’s going on here? Argus analyst Jim Kelleher believes the relative strength in U.S. stocks is due to the limited options global investors have at the moment.

“The stock returns for U.S. major indices noted above are not great, but they are certainly better than returns for most major economy indexes,” Kelleher explained, calling U.S. stocks “a relative safe haven.”

Only 22 percent of U.S. stocks currently trade above their 20-day simple moving averages (SMAs), down from 71 percent a month ago. Only 33 percent are trading above their 50-day SMA compared to 63 percent a month ago.

Outside of all the Brexit speculation, Kelleher noted that the U.S. economic fundamentals remain solid. The United States recorded…

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