Chart of the Day - Wednesday, December 20, 2023

Today’s Chart of the Day was shared by Ryan Detrick (@RyanDetrick). The official Santa Claus rally period begins on Friday. This seasonal phenomenon was first published in 1972 by Yale Hirsch in The Stock Traders Almanac. The Santa Claus Rally refers to December's last five trading days and the first two of the new year. It has historically been one of the most bullish seven-day stretches of the year regarding both win rate and average return. Since 1950, the S&P 500 rose nearly 80% of the time for an average gain of +1.32%. The Santa Claus Rally can also set the tone for the year ahead. When the S&P 500 has failed to rally during this seasonally bullish period, Ryan points out that the following year has been sub-par at best.