Markets retest lows as pessimism surges
Market observers are searching for signs of capitulation, with equity markets retesting the June low. Equity indexes are at oversold conditions consistent with June, with only 4% of the S&P 500 companies above their 50-day moving average. There may be a light at the end of the tunnel, however, as September ends, as we enter the best seasonal quarter of the year and approach the midterm election that has historically led to strong gains over the subsequent six-month period.
