Chart of the Day - Thursday, October 26, 2023

Today’s Chart of the Day was shared by Ryan Detrick (@RyanDetrick). We highlighted this chart two months ago, but it’s worth revisiting today. At the time, Ryan had pointed out that the S&P 500 tends to stall between August and November when it gains +10% or more in the first six months of a year. The S&P 500 peaked right on schedule this year on July 31st and should bottom around now. The S&P 500 has corrected -9.8% since August. It’s been a standard correction so far, and sentiment has become much less bullish since it began. With just three trading days left in October, time is running out for seasonality to save the bulls, but a durable low in the near term would indeed rhyme with history.