Chart of the Day - Friday, May 30, 2025

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

• The S&P 500 gained +6.2% in May, marking its best month since November 2023 and its best May since 1990. 
   
• The index snapped a 3-month losing streak, avoiding what would've been its longest monthly decline in over a decade. Steve points out that when a 3-month streak ends with a bang (+5% or more), forward returns have historically been consistently bullish.
   
• Based on the 10 prior signals since 1970, the S&P 500 has always been higher one year out, by an average of +20.7%. One month later? Still higher every single time, by an average of +2.5%.
   

The Takeaway: The S&P 500 rose +6.2% in May, ending a 3-month losing streak. When streaks are broken with a bang, the S&P 500 has historically trended higher with minimal interruption over the next year.