Stock Market Continues to Ignore “Sell in May and Go Away”. A Bullish Sign
Stock-Markets / Stock Markets 2018 Jul 28, 2018 - 03:57 PM GMTBy: Troy_Bombardia
As demonstrated in today’s daily market outlook, the S&P 500 tends to experience seasonal weakness from May – September.
So far the S&P 500 has ignored this seasonal weakness by going up every single month from April – June. It looks like the S&P 500 will close higher in July as well.
Remember: if the stock market is strong when it “should” be weak, that’s a sign of bullish price action.
When the stock market goes up every month from April, May, to June, it has a very strong tendency to go up in the next 3-12 months.
When the stock market goes up every month from April, May, June, to July (extending the streak), the S&P 500’s forward returns are even more bullish.
Conclusion
The stock market has ignored “sell in May and go away” so far. When this happens, the stock market has a VERY STRONG tendency to go up in the next 3-12 months.
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By Troy Bombardia
I’m Troy Bombardia, the author behind BullMarkets.co. I used to run a hedge fund, but closed it due to a major health scare. I am now enjoying life and simply investing/trading my own account. I focus on long term performance and ignore short term performance.
Copyright 2018 © Troy Bombardia - All Rights Reserved
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