A recent “healthy” pullback in the S&P 500 Index has set the stage for a powerful rebound, according to Citadel Securities’ Scott Rubner, with market positioning and seasonal trends poised to fuel a rally into year-end.
Rubner in a note to clients pointed to a mix of bullish forces, including persistent demand from retail traders; a reduction in institutional investors’ exposure to US stocks heading into the Thanksgiving holiday, which gives them more scope to reload now; and strong results from Nvidia Corp., which will likely spark traders to rush to cover hedges and rebuild positions into year-end.