Forbes Investing Ideas
Markets Creep Boldly Into Spooky October
Chris Johnson, Option Advisor 10.02.06, 1:45 PM ET
September closed out a winner on Friday, as the S&P 500 Index (SPX) and other major indices mounted a rally last week to produce one of the stronger Septembers in recent memory. The SPX gained 1.6% last week, a rare event indeed for the final week of September. Since 1970, in fact, the SPX has gained at least 1% during September's final week only six times.
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These runups are typically followed by a volatile October. It's the individual performances of these past six years that suggest potential upcoming volatility. The market is poised to make a potential move that could either take us above the Dow Jones industrial average's all-time high or back to the bottom of the trading range, in short order.
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