Here's why the stock market could be primed for a year-end rally

• The stock market has slumped in August and September, but Ned Davis Research says there is reason for optimism.
• Sentiment is nearing "extremely pessimistic levels," which could support a year-end rally.
• The current market pullback is coming at a seasonally weak time of year, which means upside remains.

After a strong start to 2023, stocks have slumped over the last two months — but that doesn't mean the home stretch of the year can't see strong gains.