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S&P Could Reach 1,100 in September: Strategist

Monday, 31 Aug 2009 | 11:44 AM ET

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.

Mood of the Markets
Alan Valdes, of Hilliard Lyons, and John Lynch, of Evergreen Investments, share their market insight.

“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.

Valdes Likes:

Financials

Health Care

Lynch Likes:

Health Care

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Disclosure:

No immediate information was available for Lynch or Valdes.

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