A Rough Month Ahead for Investors
September entered like a bear with a three-day selling spree that pummeled the S&P 500 to its worst September start in history, off 4.4%. And while stocks bounced back today as worries about European debt eased, there have been few positive changes in the U.S.and European economic and political arenas, and the same old technical problems seem to haunt the bulls.
The market has turned down from the enormous resistance formed over a seven-month period with a bearish daily reversal from the Dow Jones Industrial Average, and the S&P 500 is in the process of forming what appears to be a bearish flag. Dow Theory has confirmed a bear market, and all of the major indices have flashed a death cross.
The markets are likely to rally back to their bearish resistance lines at S&P 500 1,240 and Dow 11,670, but the trend is decidedly down. Don’t be deceived by temporary market strength; sell into it instead.
Here is our list of stocks to sell in September: