In September, even if the Federal Reserve cuts interest rates, US stocks may experience a pullback
Making a guess that might backfire. The current market is too crazy and has already priced in a lot of expectations for the Federal Reserve's interest rate cuts. Therefore, according to the iron rule of 'Buy the rumor, sell the news', it is highly likely that after the official announcement of the rate cut, there may be a pullback of about 10% (to be completed within 2 weeks). The overall peak prediction will be in October-November, after which the market's heat is expected to drop sharply, and stock indices are estimated to pull back by 30% or more.
From the monthly chart, US stocks have risen for 5 consecutive months. Based on past monthly chart analysis, a small pullback usually occurs after five consecutive months of increases. Therefore, the best scenario for September should be consolidation, and I am not optimistic about September's single-month returns. It may be wise to hold some funds on the sidelines and, when a downward trend occurs, to buy the dip and continue to go long!