Chart of the Day - Friday, February 23, 2024
February 23, 2024
🏆 Today's Chart of the Day was shared by Steve Deppe (@SJD10304).
- With only four trading days remaining in February, the S&P 500 is up +5.0%, putting it on track to achieve a four-month winning streak.
- Steve points out that when the index enters March with a four-month winning streak (or more), it has always continued higher in the remaining ten months of the year by an average of +14.6%.
- The lack of downside volatility is even more impressive. Pullbacks have generally been mild, with an average drawdown of -3.5% over the next 12 months.
- The takeaway: This is just one of many data points to consider, and history doesn't have to repeat itself. But, since the 1950s, this has consistently led to above-average gains with mild pullbacks in the remainder of the year.