[video] Quick Take: Rally May Be Short Lived
NEW YORK (TheStreet) -- Equity markets continue to drift higher as there has been no action in Syria. TheStreet's Debra Borchardt is with Mark Newton, chief market technician at Greywolf Execution Partners, with his thoughts on the market.
This is a seasonally weak time for equities, as stocks generally drift lower from August to October, Newton said, adding that historically stocks end September down 0.9%.
He also said that it's been surprising to see defensive sectors, such as utilities and consumer staples, perform so poorly, despite their typically strong seasonal trends. Technology has been doing well though, which is a good sign.
But it's easy to see why the market could head lower, he noted, especially with the slew of market-moving events just over the horizon, including Obamacare implementation, tapering talk, the debt ceiling debate and, of course, military intervention in Syria.While the market seems to favor the downside, the trend still points up. Newton said that although there haven't been many buyers, there also haven't been many sellers, making for a range-bound market. He concluded that prices have pulled back a bit, but held the support levels they needed to and that the price action in the financial sector will be important going forward. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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