The stock market typically cools off in October following a really strong third quarter, but any weakness could prove to be a potential buying opportunity for year-end, according to Piper Sandler.
On Tuesday, the first day of the month , the Dow Jones Industrial Average and the S & P 500 fell, while the Nasdaq Composite dropped more than 1%.
Those losses come after the S & P 500 advanced 5.5% in the three months ended September.
Since 1928, following the 34 instances when third-quarter returns were greater than 5%, the S & P 500 then slid 1% on average in October, the technician said.
.SPX 1M mountain S & P 500 Many investors agree that the bias into year-end is to the upside, after some near-term seasonal weakness.
Persons:
Piper Sandler, Stocks, Hurricane Helene spooked, Craig W, Johnson, Tom Lee, we've, Lee
Organizations:
Dow Jones Industrial, Nasdaq, Fundstrat Global Advisors
Locations:
U.S, Hurricane