Chart of the Day - Monday, October 3rd, 2022

Today’s Chart of the Day was shared by Jeff Hirsch of the Stock Traders Almanac (@AlmanacTrader). Seasonal and cyclical trends have been working against investors all year. We're coming off the weakest month, within the weakest year of the 4-year Presidential Cycle. The good news is that we're currently in the 'Sweet Spot' where a lot of these cyclical headwinds start to turn into tailwinds.  The blue line is a composite of the 1-year seasonal pattern for all years, the 4-year Presidential Election Cycle, and the Decennial Cycle. As you can see, this composite has caught several major turning points in 2022 including the June lows and the August highs. If the S&P 500 continues to track this composite, we could see a strong fourth quarter. For more on this, check our recent interview with Jeff.