Are We in For a Rough Couple of Months

August and September have had dismal records for stock returns over the past 20 years and with strategists warning that the market is overdue for a major correction, the next two months could be rough. But there are reasons to believe that any impending selloff may not be as cataclysmic as some fear.

Bank of America Merrill Lynch’s technical research analyst Stephen Suttmeier pointed out that there are some very important factors that suggest that the market’s upward trajectory remains very much intact despite the track record working against it.

“First half 2017 was above average and this bodes well for second half 2017 and the data for all periods, secular bull market years, and Presidential Cycle Year 1 suggest that the S&P 500 could end the year in the 2,550-2,640 range,” said Suttmeier in a report.

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This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam

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