S&P 500 Eyes September Rally, Defying Seasonal Slump
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September has long carried a reputation as the S&P 500's weakest month, but the setup heading into this year looks different. A critical support zone that has held firm through recent volatility is giving traders reason to think the index can avoid the seasonal drawdown that typically weighs on sentiment.
Momentum indicators remain constructive despite the calendar-based caution flags. Rather than positioning defensively, some desks are treating dips as opportunities, betting that the structural uptrend that defined the summer months carries into autumn.
If the index holds above its recent range lows, bulls may argue the September curse is more narrative than mechanism this cycle, with price action ultimately deciding the debate.