A bullish slingshot?
When the S&P 500 is up >5% in January on the heels of a negative year, the future returns are quite impressive.
Only happened 5 other times, but higher for the full year each time and up nearly 30% on average.
Take note, S&P 500 up 6% in Jan currently. pic.twitter.com/z9a49adTUM
— Ryan Detrick, CMT (@RyanDetrick) January 27, 2023
Today’s Chart of the Day was shared by Ryan Detrick (@RyanDetrick). With just two trading days left in January, the S&P 500 is up 6.02% to start the year. Ryan points out that when January is up more than 5% after a down year like 2022, it has historically been a good omen for the year. The full-year returns have always been positive, with an impressive average gain of 29.7%. To be fair, this has only happened five other times since 1950, so the sample size is small. But history tells us that a strong January has often been followed by further gains in the remainder of the year.