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Nasdaq 100 and S&P 500 declines in September present a buying opportunity, says Ned Davis Research.
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Weak seasonality data and excessive pessimism readings suggest a strong 4th quarter rally is ahead, NDR said.
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NDR sees no signs of a sharp bear market, with positive earnings revisions and economic indicators.
A 6% decline in the Nasdaq 100 and 4% decline in the S&P 500 since the start of September represents an attractive buying opportunity for investors, according to Ned Davis Research.
The research firm said in a note on Friday that the weakness in stocks so far this month is more than typical, given weak seasonality data — but it’s also a big opportunity given the market is heading for its best three-month stretch of the year.
“With the September weakness relieving the optimism and sending sentiment indicators to excessive pessimism readings, equities would…
