The summer is over, at least in Wall Streetâ??s eyes, and traders now have returned to the floor after the long Labor Day weekend. Back to work means back to big trading volume, and I suspect that means we could see a return of volatility.
To be certain, this year volatility has been largely absent, and, except for a few scattered weeks of fearful selling in January, April, late July and early August, things have been steadfastly bullish. In fact, recent action in the S&P 500 tells the tale of a market determined to push higher.
After falling to an approximate three-month low on Aug. 7, equities staged a nice rally that saw the S&P 500 rise in 12 of the last 16 trading sessions. The broad-based measure of the domestic market now trades just above the psychologically significant 2,000 level.
The question many, including me, are asking is can this rally keep going without another significant pullback?
Read more about whether volatility will return in September at Eagle Daily Investor.