"The market has blatantly ignored the seasonal weakness we've historically seen during August and September,"
"This is probably the most bullish part of it all."
"It is hard to argue with a bull market that is making new highs and is powered by cyclical leadership. However, recent overbought conditions paired with diverging market breadth suggest this melt-up could be due for some cooling off,"
Since 1950 the final quarter has been positive for stocks 80% of the time, averaging a 4.2% gain — nearly double the first quarter's 2.2% average. The S&P 500 closed September up, marking five consecutive monthly gains and nullifying typical August–September weakness. Some technicians call this a bullish signal, citing seasonal defiance and cyclical leadership. Other strategists warn that overbought conditions and diverging market breadth signal complacency and a possible cooldown, yet they still advise buying dips. Ongoing risks include evolving tariffs, labor weakness, slowing Big Tech earnings growth, and stretched valuations.
Read at Axios
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