Market Call: BBR Back Under 1.00

Given the recent action in the stock market, it's not surprising to see that the Bull/Bear Ratio compiled by our friends at Investors Intelligence dropped to 0.96 during the September 20 week from 1.15 the previous week (chart below). In the past, readings of 1.00 or less have proven to be contrarian signals of good times to buy for long-term investors.

We still expect the S&P 500 to trade between the June 16 low of 3666 and the August 16 high of 4305 through the end of this year. It should be closer to the top end of the range by the end of this year. Forward earnings is likely to remain flat around current levels through the end of this year in our "rolling recession" scenario, as we discussed in today's Morning Briefing. So the forward P/E will continue to dominate the volatility of the market.