have confirmed a short-term cycle bottom for September and are now expected
to rise until the end of the month. A positive close for September will turn historic
seasonal patterns upside down. Investors were afraid of September, due to its historic performance.
Today we upgraded the MSCI World and S&P500 to short-term positive as they managed to
rise above the pre-defined upgrade levels.
A 2-3 day consolidation is possible after the recent advances in the equity markets, but the
uptrend from early September lows should resume. Once the month of September can close
with a positive note, pressure will increase on assets standing on the sidelines. Our calculations
show that investors have not fully participated in the best 6-month rally for the S&P500 since
1974. Thus, equity markets are likely to finish the year with a year-end rally as equity markets
continue to climb a wall of worry.
The painful consolidation from June is over for the