I find that charts can give you a bit of perspective so here are a few covering the main equity markets, bonds, FX and sentiment indicators.
Sentiment indicators are saying “sell” but they have been in that mode all year if not longer. However market breadth is weakening which is never a good sign and the Elliotticians tell me we are in a wave 4 correction in the S&P and fourth waves can drag on so further downside is a possibility.
On a seasonal basis September conformed by being the worst month in 2021 and that can roll into the first few weeks of October. Any disappointing Q3 earnings could be the trigger, but we then move into November and December, two of the three strongest months, the other being April, which was a strong performer this year.
2021 is panning out in typical seasonal fashion so whilst the results season could see some choppy action the potential economic growth rebound as virus cases fall could see some of the upside targets come into play.
Here's hoping. Let me know if you want a full presentation pack.
Enjoy your weekend