9-2-25 Be Cautious With Allocations | Before the Bell

Markets closed down a bit on Friday ahead of a long, holiday weekend, but still maintained its bullish trend. The 20-DMA is continuing to act as running trend support, and bullishly-speaking, the market is doing just fine. The trend line support is very important because trading algorithms and systematic traders have all moved their stops up to that 20-DMA; if we DO get a confirmed violation of the 20-Day, we could see more selling pressure come into play. Just below that is the 50-DMA, which will become much more critical for support: If the market takes out the 50-DMA, a LOT of programmatic selling will kick in, followed by a quicker drop to the 100- and 200-DMA's...which have all converged around 6,000. We don't think we'll see 6,000 by the end of the month, before we get set up for an end-of-year rally, but there is the potential for a pullback this month. There is a lot of speculative activity that could be quickly unwound if we get a bit of a correction. The divergences in relative strength and momentum we've been watching are precursors for larger than normally expected corrections. Re-balancing portfolios and storing up a little cash this month would be wise.  Hosted by RIA Chief Investment Strategist, Lance Roberts, CIO  Produced by Brent Clanton, Executive Producer ------- Watch the Video version of this report on our YouTube channel: https://www.youtube.com/watch?v=__3NfLfuGNQ&list=PLwNgo56zE4RAbkqxgdj-8GOvjZTp9_Zlz&index=1  ------- Articles mentioned in this report: "Meme Markets: Investing vs. Entertainment" https://realinvestmentadvice.com/resources/blog/meme-markets-investing-vs-entertainment/ ------- Get more info & commentary:  https://realinvestmentadvice.com/insights/real-investment-daily/ ------- Register for our next RIA Dynamic Learning Series event, "Savvy Medicare Planning," September 18, 2025: https://realinvestmentadvice.com/resources/events/savvy-medicare-planning-what-baby-boomers-need-to-know-about-medicare/ ------- Visit our Site: https://www.realinvestmentadvice.com Contact Us: 1-855-RIA-PLAN -------- Subscribe to SimpleVisor: https://www.simplevisor.com/register-new -------- Connect with us on social: https://twitter.com/RealInvAdvice https://twitter.com/LanceRoberts https://www.facebook.com/RealInvestmentAdvice/ https://www.linkedin.com/in/realinvestmentadvice/ #BullishTrend #NegativeDivergence #MarketCorrection #PortfolioAllocation #20DMA #50DMA #100DMA #200DMA #InvestingAdvice #Money #Investing