S&P Could Reach 1,100 in September: Strategist
How is this last trading day of August going to setup the markets for a traditionally weak September? Alan Valdes, vice president at Hilliard Lyons and John Lynch, chief market analyst at Evergreen Investments shared their insights.
“I don’t think we’re in for a bad September,” Valdes told CNBC. “A lot of money managers have missed the 3,000-point rally and we’re getting towards the end of the year. We have a big option exploration at the end of September and these guys have to get involved.”
In the meantime, Lynch said he expects a small pullback in the next couple of days.
“We haven’t had the dog-days of summer since the first week in July so with what happened with Chinaand the concerns about the NY Fed’s comments—that could be a one-two punch for the market,” he said. “But I want to emphasize 'small' because the technicals look magnificent.”
This week will be another low-volume week, but going into September, the absence of analyst downgrades and the technical strengths can push the S&P 500 toward 1,050-1,100, said Lynch.
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No immediate information was available for Lynch or Valdes.
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