Chart of the Day - Tuesday, August 3rd, 2021

Today’s Chart of the Day was shared by TrendSpider (@TrendSpider). The chart shows the monthly win rate for the Volatility Index ($VIX) over the past five years. The stock market has been pretty calm so far in 2021. The S&P 500 hasn't had a single pullback of  5% or more all year, which is unusual considering the average year sees about three. Furthermore, we haven't had a correction of 10% or more on a closing basis since the bull market began over a year ago. However, things could get turbulent over the coming weeks if recent history is any guide. While five years is a very small sample size, the VIX has closed higher every August since 2016. On a brighter note, it closed lower every September since 2016. For seasonality tools like the one seen here, be sure to check out TrendSpider. Use the code TCR40 to save 40% at signup!