The Correction Appears Ripe for Rebound

Historically, August is one of the 4 worst performing months for the S&P 500 (source: Stock Trader's Almanac). This year, the S&P's performance fit the history, falling -2.8% during a market correction.  The large, blue arrow represents the month of August. It's not hard to see why buying stocks was a challenge last month.

Now comes September, which is the "worst" performing month of the year (source: Stock Trader's Almanac). Can it get any worse? With concerns over strikes against Syria and the uncertain, unintended consequences of such an act, investors may continue to take profits and play it safe. 

The bigger picture is still an uptrending market on the weekly chart, now in a retracement or broad range. If the lows of August hold, then September can retest up towards the previous highs of August.  The last correction in May-June lasted 24 days. The current correction will begin Day 21 on Tuesday, so the time may be ripe for a rebound. Manage risk, be patient, stay focused.