Today’s Chart of the Day was shared on Twitter by Renaissance Macro Research (@RenMacLLC). The red line shows the S&P 500's average performance during election and post-election years. Renaissance points out that stocks have historically stumbled between February and April of post-election years. Seasonality has been a nice tailwind for stocks since October, but that is no longer the case. The good news? The S&P 500 continues to be in a strong uptrend and the trend is far more important than seasonality. So, the bulls have that going for them. But, it's important to be aware that seasonality and the Presidential Election Cycle do not favor the bulls over the next few months.
Chart of the Day - Tuesday, January 26th, 2021
January 26, 2021
