Last week, we discussed the odds of the S&P 500 (SPY) being at the start of a correction or closer to the end of a dip. For a variety of reasons, we concluded that dip was more likely especially as coronavirus cases keep plunging. This has come to fruition as the market has recovered a little more than half of its losses with reflation stocks leading. And, we might have another major catalyst for this trend looming. Due to these factors and more, I’m becoming increasingly optimistic about the market’s prospects into year-end. In this weeks’ commentary, I will cover these improvements and update our market outlook. Read on below to find out more….(Please enjoy this updated version of my weekly commentary published September 27, 2021 from the POWR Growth newsletter).
First, let’s do our regular look at what’s transpired in the S&P 500 for the last week:
Clearly, the bounce that began last Monday at 3pm has continued. Overall, the S&P 500 is up 3.2% from its recent low, and it’s off 2.2% from its all-time highs in early September. The Russell 2000’s performance is even better as it’s up 4.6% from Monday’s lows.
