Looking for September's market ledges
Defining potential lows helps signal if they are an entry point for the brave in anticipation of a rebound, or an indication of a broader market collapse
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IF SHAKESPEARE had traded the financial market he would have warned to "beware the ides of September" because September is the worst month in the market.
October has an undeserved bad reputation but historically the market ends October higher than it opened at the beginning of the month. September is the month when the market is most likely to stumble and finish lower.
Already the market has been munching on a disaster diet, flinching in fear at real and imagined problems. The Federal Reserve's Jackson Hole meeting to discuss US interest rate settings turned out to be a damp squib, so the market is turning its attention to other potential disasters. There is no doubt it will find one and September suggests a dramatic fall is in the offing.
