The market bull market is back, but what do the US elections suggest?
Wall Street is returning to overly bearish sentiment in the second half of 2024, but is this actually a contrarian signal heading into the US presidential election? Steven Suttmeyer, chief equity technical strategist at Bank of America Securities, sits down with Market Domination’s Josh Lipton and Shauna Smith to discuss where markets (^DJI, ^IXIC, ^GSPC) may encounter resistance with less than 70 days until the election. “The difference between a normal year and an election year is that a presidential election year tends to have a strong rally in June, July, August and the summer of this year, which then typically leads to a bit of a pullback or consolidation in September and October,” Suttmeyer told Yahoo Finance. “The average return was slightly negative. In election years, September averaged -0.46% and October -0.34%. So there was a bit of a pause and a bit of a pullback. And that typically precedes the end-of-year bounce after an election, the relief bounce. Suttmeyer also comments on technical analysis of small caps (^RUT) and seasonality indicators that may point to a correction in the S&P 500 (^GSPC). For more expert insights and the latest market trends, click here to watch this full episode of Market Domination. This post was written by Luke Carberry Morgan.