| | | The S&P 500’s pullback is a typical September correction, not a bear market sign – analyst
Sep. 06, 2024 11:09 AM ET\By: Monica L. Correa, SA News Editor
 Trevor Williams
The S&P 500’s ( SP500) pullback aligns more with a market correction, typical of the months of September and October, rather than the start of a bear market, Ned Davis analysts said.
Ned Davis’ chief U.S. strategist Ed Clissold said that, historically, bear markets rarely start in July and August, and that July is the most common month for a 10% correction to start within an ongoing bull market.
In addition, Clissold said that because the S&P 500 ( SP500) has failed to surpass the July 16 high, the seasonal pattern of a July correction “within a bull” is still in play.
The S&P 500 ( SP500) is down about 1% since yesterday, and down 2.62% from five days ago. It is also near its 50-day moving average ahead of the jobs data that comes out later today.
Matt Maley, chief market strategist at Miller Tabak + Co., said that if the S&P 500 (SP5000) can bounce off its 50-day moving average in a significant way, “it should be quite bullish.” But if it breaks it again, “it should signal that September will once again be a rough month for equities.”
The S&P 500 ( SP500) is up 14.19% year-to-date at 5,446. |
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