S&P 500: 5 Bullish Mid-Term Signals Pointing Towards a Strong Q4 Performance
Perhaps now is an opportune moment to recall that historically, the period from November through January stands out as the most bullish three-month stretch of the entire year. Not only that, it marks the start of the most bullish six-month phase for the stock market.
In the ongoing 2023, we've witnessed the display of the exact historical pattern:
Turning our attention to the S&P 500, historical data since 1945 reveals Thanksgiving week as favorable, boasting an average gain of +0.60%. Since 2000, this figure has risen to +0.87%.
Does this imply investors should gear up for the much-awaited Santa rally? We shall see. But odds are certainly stacked in bulls' favor.
The VIX volatility indicator has undergone a significant downturn, plummeting by -41% in the past four weeks (from 21.27 to 12.46). This marks the ninth most substantial 4-week drop in its entire history.
Closing Friday's session at 12.46, the VIX hit its lowest level since January 2020. Let's delve into the nine most noteworthy 4-week declines:
Here's an intriguing tidbit: examining the S&P 500's performance following these occurrences:
At the moment it is resting on its support, being the chart clarifying as to the relevance of that area.
The renowned eight-day stretch at the close of November signals a highly favorable period for the markets. In the case of the S&P 500, dating back to 1950, the days from the 23rd to the 30th have proven consistently interesting; in fact, the market has never, on average, experienced a decline during this timeframe.
The breakdown is as follows:
Let's observe whether history repeats itself once more this time around.
Institutional managers no longer have confidence in the US dollar, as they believe that the Federal Reserve has
Read more on investing.com
