Chart of the Day - Thursday, January 2, 2025

🏆 Today's Chart of the Day was shared by Chris Verrone (@verrone_chris). 
 

• It was a December to forget, with the S&P 500 dropping -2.5% last month. In addition, the Santa Claus Rally will likely be negative this year. It officially ends tomorrow, but $SPX has fallen -1.8% since it started.
   
• While Santa failed to show up last month, Chris points out that January has historically been more meaningful than December in setting the market's tone for the next six months. 
   
• When January was positive, the S&P 500 historically gained an average of +6.9% over the next six months. When January was negative, the index only gained +0.6%. 
   

The Takeaway: January has historically been more prophetic than December in setting the tone for the next six months.