SPY 20% upside by Sep/OctThe last week or so seemed to be very bearish in equity markets. Looking SPY adjusted for CPI this small pullback just tested highs of 2022. Weekly candle closed right at 9 week moving average with a long bottom wick, on a high volume. Meaning buyers stepped in below 9 week MA.
Anything is possible, but I am seeing further 20% or so upside on SPY before end of October.
Purely based on historical market performance in the election year as well as the typical year seasonality, I do expect a correction to happen before presidential elections. I think it will happen in late October, but it could start in September just as well. I think it will be sharp, but short lived. Price could test current levels - highs of 2022 (CPI adjusted) once again.