Chart of the Day - Wednesday, June 1, 2023

Today’s Chart of the Day was shared in a note by Jeff Hirsch, editor of The Stock Trader's Almanac. The chart show June's seasonal pattern for the Dow (red), S&P 500 (green), Nasdaq (blue), Russell 1000 (purple), and Russell 2000 (black). June hasn't been very bullish over the past 21-years (solid lines) with four of the five major indices showing negative average returns. However, Jeff points out that June's seasonal pattern significantly improves during pre-election years like 2023 (dashed lines). In pre-election years, all five indices have historically ended the month higher. The Nasdaq has been the strongest, gaining more than 2% on average. The Dow has been the weakest, but it still gained more than 1% on average. For more on June seasonality, check out the full note here.