Chart of the Day - Friday, September 13, 2024

🏆 Today’s Chart of the Day was shared by Jason Goepfert (@jasongoepfert).
 

• The S&P 500 closed higher every day this week, gaining +4.02%. This was its best week of the year, while last week was its worst, dropping -4.25%.
   
• Jason points out that when a big weekly reversal occurs near a new high, the S&P 500 has historically had above-average returns. Since 1957, 10 other significant reversals have occurred within 3% of a 52-week high (-3% week followed by +3% week). 
   
• Over the next three months, the S&P 500 has been higher 90% of the time, by an average of +5.2% versus a typical three-month average of +3.5%. 
   

Takeaway: The S&P 500 went from its worst week of the year to its best, gaining +4.0% this week. Over the decades, similar reversals have been more bullish than bearish.