Chart of the Day - Friday, January 31, 2025

🏆 Today's Chart of the Day was shared by Steve Deppe (@SJD10304). 
 

• The S&P 500 fell -1.0% this week. However, it still closed at all-time highs on a monthly basis, rising +2.7% in January. 
   
• Steve points out that $SPX had a Bullish Outside Reversal Month, meaning January's highs and lows exceeded the prior month's range. 
   
• There have only been eight prior instances since inception, but forward returns have historically been strong. February has been positive 86% of the time, for an average gain of +2.2%, and the next 8-12 months have never closed lower. 
   

The Takeaway: Despite breaking the prior month's low at one point, the S&P 500 closed at all-time highs on a monthly basis, rising +2.7% in January. A Bullish Outside Reversal in January has historically been a positive sign for the rest of the year.