-
The S&P 500 has had a bad performance trend in September, with an average slide of 0.7%.
-
But this month may lose this trend, according to the Bank of America.
-
The benchmark index’s 18% rally has set it up for further gains year-on-year, a strategist said.
Shares are the same. Trading session In what was historically the worst overall month.
Since 1945 S&P 500 It slipped an average of 0.7% in September, data from CFRA Research shows.
But the benchmark index’s 18% rally year-to-date means it is well positioned to buck that trend and deliver further gains this month, Bank of America technical strategist Stephen Suttmeyer said Friday.
“The best setup for both September and the rest of the year is when the S&P 500 is up between 10% and 20% from January to August,” he wrote in a research note seen by Insider.
“This is the situation for 2023,” Suttmeier added.
Stocks struggled for the ninth month in history – prompting traders to coin the term “”.The result of September“There’s little consensus on why the S&P 500 and Nasdaq Composite tend to be so weak.
But in 2023 they don’t need to worry – because The massive, AI-fueled lineup That suggests the shares have risen so far, indicating a green light for further gains this year, Suttmeier said.
Bank of America’s chief technical strategist said that while the S&P 500 had risen between 10% and 20% before September, it had returned 65% for the month and returned an average of 0.8%.
If it follows historical patterns, the large-cap benchmark could rise 8% from its current level to end trade at around 4,850 points, he said.
Read the main article Business Insider