September is historically the worst month for stocks, with the S&P 500 posting its lowest average monthly return. The VIX volatility index fell to 14.1 last week, the lowest level of the year, making downside protection options inexpensive. The S&P 500 hit an all-time high of 7,816.70 in August after gaining nearly 7% from late July, but has since stalled or declined. Corporate share buybacks are expected to slow starting September 12, and retail investor buying activity reaches its lowest annual level this month. According to Scott Rubner of Citadel Securities, upside catalysts are becoming less obvious while downside catalysts are multiplying.
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