Chart of the Day - Friday, January 21st, 2022

Today’s Chart of the Day was shared by Ryan Detrick (@RyanDetrick). The S&P 500 closed below its December 2021 low yesterday, which could spell trouble for the rest of the year. Over the past 72 years, the S&P 500 has undercut its December low within the first quarter 36 prior times. The rest of the year was a coinflip, closing positive 50% of the time for a tiny average gain of just 0.3%. On the other hand, returns were far better when the S&P 500 held its December low, with the S&P 500 closing higher 94% of the time for an average gain of 18%. Last year was a walk in the park for the S&P 500 considering it gained more than 27% with very little downside. History is suggesting the S&P 500 is in for a much more challenging year in 2022.