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The S&P 500 Has Been on a Tear. History Says the Rally Is Due for a Pause.

1. S&P 500 gained 20.3% over 100 days, indicating potential for correction. 2. Analysts anticipate modest gains for Q4, suggesting cooling market dynamics. 3. Market rally continues but is expected to lose momentum as year ends. 4. Major firms set their end-of-year S&P 500 targets around 6,600 to 6,800. 5. Historical patterns suggest average post-100-day returns are lower than recent gains.

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FAQ

Why Bearish?

A potential market correction is indicated by unusually high recent gains. Historically, gains following such periods have been modest, suggesting a lower trajectory for SPY.

How important is it?

The article discusses market dynamics that directly affect SPY's trajectory, indicating a need for cautious reevaluation of investments.

Why Short Term?

The anticipated cooling of the market is expected to manifest quickly, possibly within the next quarter.

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