The S&P 500 Index is Entering a Seasonally Weak Period

The S&P 500 Index is entering a seasonally weak period.  The chart below shows the predicted turning points based on the past five years of historical data. 

 

 

History does not typically repeat itself, exactly; but it often rhymes.  So, it makes sense to keep seasonal tendencies in mind.  With that said, some things potentially different this year include that this is an election year and world governments are coordinating central bank stimulus actions.

However, the chart below should serve as a reminder that there a lot other markets worth trading too.  For starters, Soybeans are up 45.25% so far this year.

The chart shows the top-ten performing markets, ranked by yearly performance, for the past few years.   The data is color coded based on sector. The first column posts the current year's open performance followed by six columns of closed yearly market performance.

 

 
Note how much diversification there has been in the top-ten throughout the years.  Click the chart to see an expanded version of this data (showing 40 global futures markets).

That is the funny thing about markets ... something is always working.  The trick is finding it while it's working.

Related articles

• S&P 500 Index at Inflection Points (ritholtz.com)
• S&P 500 Index: Summer Is a Time for Patience and Endurance (minyanville.com)
• S&P 500 Index: Put Your Seatbelts On, It's About To Get Bumpy (INDEXSP:.INX, SPY) (etfdailynews.com)