Chart of the Day - Wednesday, June 3rd, 2020

Today’s Chart of the Day was shared on Twitter by Ryan Detrick of LPL Financial Research (@RyanDetrick). Today marked the 50th day since the March 23rd low. The S&P 500 has surged 37.70% since then (39.57%, including today). Ryan points out that this has been the best 50-day rally in the history of the S&P 500. The table shows the seven other largest 50-day gains and their 1, 3, 6, and 12-month forward returns. Ryan notes that the S&P 500 was higher 6-12 months later every single time. The short-term and long-term returns are positive across all four time frames, with a median gain of 1.1% one month later and a median gain of 19.4% one year later.  It's easy to think stocks have come too far too fast, with the S&P 500 up nearly 40% in less than three months. However, history shows us that sharp 50-day rallies have led to further gains.