Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

The Worst Month of the Year is Behind Us — Here’s What We Need to See for Better Times Ahead

by September 30, 2023
September 30, 2023
The Worst Month of the Year is Behind Us — Here’s What We Need to See for Better Times Ahead

The S&P 500 posted its worst month so far, with a 4.9% decline that’s pushed the year-to-date returns for this benchmark index almost in half. With elevated interest rates that may be with us for a while, investors have pushed stocks lower, in a move that has over 10% of large-cap stocks well into oversold territory. We’re talking about names such as McDonalds (MCD), Boeing (BA) and Blackrock (BLK), to name just a few.

The current downtrend in the markets was signaled by a close below the 50-day moving average on heavy volume earlier this month, which was coupled by a move of the RSI and Stochastics  into negative territory. Further weakness followed, with news that the Fed is anticipating an elevated rate scenario for longer than anticipated, pushing stocks even lower.

DAILY CHART OF THE S&P 500 INDEX

Above is a daily chart of the S&P 500, and highlighted are the key characteristics that need to take place before we’re back in an uptrend. To begin, we’ll need this index to close above its 50-day moving average, coupled with a positive RSI and Stochastics. While this may appear far from possibly taking place, a multi-day rally in the mega-cap names such as Microsoft (MSFT) and Alphabet (GOOGL), which led us out of the March pullback, would go a very long way in sparking a reversal.

Outside of price action on the chart of the S&P 500, we’ll need to see interest rates trend lower from their current position. During the mid-March downtrend reversal, the yield on the 10-year Treasury note closed below the widely-watched 4% level after a lower-than-expected CPI report hinted at decelerating inflation. A similar drop in interest rates will be a key needed development to get investors back into these markets.

While we’re on the lookout for the markets to trend higher going into year-end, near term, we may see further weakness heading into next week. While the major indexes rebounded from midweek lows, a continuation rally into Friday was reversed, in a signal that the short-lived rally attempt had ended. The reversal followed news that a federal government shutdown is increasingly likely on Sunday after House Speaker McCarthy’s funding proposal was rejected.

With investor sentiment remaining negative over the near term, this is an ideal time to build out your watchlist for when we return to a more bullish period. For those who’d like to have immediate access to my highly curated watchlist, as well as be alerted to when it’s safe to get back into the markets, use this link here.

Warmly,

Mary Ellen McGonagle

0
FacebookTwitterGoogle +Pinterest
previous post
Here are the 21 House Republicans who voted no on McCarthy’s stopgap funding bill to avert government shutdown
next post
I can’t make you love me

You may also like

Crude Oil Disagreeing with the Canadian Dollar

September 29, 2023

Sector Spotlight: Sector Rotation Model All Over the...

January 17, 2023

Why ADX Can Mislead You — And How...

June 4, 2025

Swing Trading Strategies, Tips & Trends

February 29, 2024

DP Trading Room: Swenlin Trading Oscillators Top!

December 2, 2024

Looking at Topping Patterns

August 19, 2022

S&P 500 Earnings Results Are In for 2024...

July 2, 2024

US Sectors Soar to New Highs!

October 1, 2024

Defense Stocks To Buy: A Strategy You Need...

April 19, 2023

Simple Tools to Improve Timing

October 20, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • House Democrats call on Rubio to allow injured children from Gaza into US following visa halt

      August 27, 2025
    • SkyWater pitches itself as all-American firm as Trump mulls more equity deals following Intel deal

      August 27, 2025
    • 600,000 Chinese Students Would Be a Windfall for the United States

      August 26, 2025
    • EPA urged by state AGs to axe funds for ‘radical’ climate project accused of training judges

      August 26, 2025
    • ‘Doctor Strangelove with a mustache’: Bolton blasted for ‘profiteering’ off US secrets by White House advisor

      August 26, 2025
    • Bolton may be in hot water as FBI investigation expands beyond controversial book

      August 26, 2025

    Categories

    • Business (8,886)
    • Investing (2,242)
    • Politics (16,495)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved