The S&P 500
While nothing is ever certain until it happens, the stock market appears to be ready for a major breakout from its recent short-term trading range.
If the S&P 500 closes above the upper resistance level of 1131.00, we should see additional money flow into the stock market, which will boost stock prices further.
The S&P appears positioned to break out, having rallied 6.9% over the last nine trading sessions. While the month is not over, the market weakness historically seen in September has not played out this year. And with this being an options expiration week, there is an added positive bias to the market.
You may have noted that consumer sentiment was incredibly low at the end of August, but the market, of course, typically reacts in the opposite way from what investors are feeling. So if you’ve put a lot of your portfolio into cash in anticipation of a buying opportunity, this may be it.