Forex – The stock market could be heading for a correction if U.S. employment data is weak on Friday, according to Scott Rubner, managing director and tactician for global markets at Goldman Sachs Group Inc.
Rubner said the bank’s clients had positioned themselves for a negative technical outlook for equity prices in the second half of September and expect a risk-off move to begin on September 16.
“If payrolls are weak on Friday, a correction could begin in the market,” Rubner wrote in an investor note.
Rubner, late September S&P 500He noted that this is historically the worst two-week period of the year for stocks. During this period, systematic funds that follow trends have little room to invest in stocks, while companies are about to enter buyback blackout periods, further reducing demand for the stock market.
