Chart of the Day - Monday, October 18th, 2021

Today’s Chart of the Day was shared by Topdown Charts (@topdowncharts). The black line shows the S&P 500's average seasonal pattern using data from 1990-2019. The red line shows how the S&P 500 has performed so far this year. We've all heard the adage; "Sell in May & Go Away" but don't forget; "Buy in October & Get Yourself Sober!" As you can see, the S&P 500 tends to bottom in mid-October and rally until May. Sell in May & Go Away didn't work this year, with the S&P 500 gaining roughly 7% since May. While some view this as a failure of seasonality, we see it as a testament to how strong the underlying trend is. Seasonality is just one of many data points to consider, but it's important to know that the calendar shifts from bearish to bullish right about now.