Chart of the Day - Tuesday, August 1, 2023

Today’s Chart of the Day was shared by Andrew Thrasher (@AndrewThrasher). The S&P 500 closed higher for the fifth consecutive month in July. However, stocks have historically been weak over the next few months, especially in pre-election years like 2023. Andrew compares the current rally since May (black) to the past eight pre-election years since 1991. It's common to see the S&P 500 stall, pull back, or correct around August of pre-election years. It would be unusual to see the S&P 500 continue to rise at its recent pace over the next few months. If we do see strength, it will be a testament to how strong the underlying bid is. For more on this chart, read the original blog post here.