Not much new on Wall Street today – another lazy day in late summer. Stocks continue to churn on anemic volume just above key support levels:
The S&P continues to mill about just above its key support at 1040. (Source: StockCharts.com)
Meanwhile, it seems like most investors are well aware of the fact that September is historically a very bad months for stocks – from Minyanville:
But if history is any guide, strategists emphasize, we may be in for another rough ride as September now kicks off. S&P’s Sam Stovall notes that the S&P 500 has posted its worst monthly return in September whether you go back to 1990, 1970, 1945, or 1928.
Another reason to worry: The mid-term election could put additional pressure on the benchmark this month, Stovall says. Since 1930, the S&P 500 declined an average 1.7% in the September before the mid-term elections and recorded a 52% frequency of decline.
While I continue to stay short this market (current futures positions here):
I’m not sure if I’d initiate a new S&P short position at this juncture – as the contrarian in me thinks we’ve got to see some sort of short-term pop soon. Markets rarely cooperate with broader prevailing sentiment.