The $SPX fell 1.8% in Aug after surging 19.5% YTD thru July. The 13 previous times SPX +>10% thru July &⬇️in Aug, it rose every time Sept-Dec by avg of 9.9%. Just one data point, but it supports the case that the Aug decline was a pullback within an ongoing uptrend. @NDR_RESEARCH pic.twitter.com/phypwypnA0
— Ed Clissold (@edclissold) September 1, 2023
Today’s Chart of the Day was shared by Ed Clissold (@edclissold). September has historically been the worst month of the year for the S&P 500. However, any potential weakness this month could be a buying opportunity if history is any guide. Ed points out that when the S&P 500 has been up +10% or more through July, the final four months of the year have always been positive, by an average of +9.9%. Of course, history is under no obligation to repeat itself, but it does tell us strength tends to beget strength.