Chart of the Day - Tuesday, February 1st, 2022

Today’s Chart of the Day was shared by Frank Cappelleri of Instinet (@FrankCappelleri). The S&P 500 dropped 5.3% last month, marking the worst January since 2009. Frank points out that we tend to see further weakness in February after big down Januarys. The table shows all the years in which the S&P 500 was down 4% or more in January. Of the 16 prior occurrences, the S&P 500 was down 69% of the time in February for an average loss of 1.68%. The full year was down 62% of the time for an average loss of 2.14%. Of course, anything can happen. But hopefully, this gives you an idea of what's possible and probable as we kick off the new month.