[PLUS] September Weight of the Evidence Dashboard: Recovery Is A Work In Progress
September 6, 2022
Key Takeaway: The historical experience is pretty clear: the recent combination of breadth and momentum thrusts typically indicates that the path of least resistance is higher. Despite the volatility over the second half of August there is little to suggest this time will be different. Nonetheless, last month’s mid-month reversal has kept the weight of the evidence from continuing to improve. The macro backdrop remains a challenge, while the most persistent downtrend in stocks in over a decade is hampering rally attempts. Patience has been a virtue all year and that remains the case as we move toward the final quarter of 2022.
