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The stock market is ripe for a pullback after a 93% rally, but any weakness should be bought, LPL says

Mount Equity Group Tokyo, Japan > News > Markets > The stock market is ripe for a pullback after a 93% rally, but any weakness should be bought, LPL says

The S&P 500 has staged a 93% rally to new records since its pandemic low reached in March 2020.That strong surge in such a short period of time means the market is “ripe for a pullback,” LPL said in a Wednesday note.A decline could occur in seasonally weak June, but any weakness should be bought, LPL argued.

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    The stock market is “ripe for a pullback” following its monster rally from the pandemic lows, according to a Wednesday note from LPL.

    The S&P 500 has rallied 93% from its intra-day low reached in March of 2020, and now the market needs to consolidate those gains. Add in that June has historically been a weak month for stocks, and a period of weakness for stocks seems likely, according to the note.

    Since 1950, June is the fourth worst month of the year, according to LPL. Only September, February, and August have produced worse returns. And when June is a down month, stock on average fall 2.9%. But it isn’t common for a major market sell-off to begin in