As reported by Jeff Hirsch in the Stock Trader’s Almanac, A big upside move of over a 5% gain on the S&P 500 during what is historically regarded as the Worst Six Months of the year for the stock market (or the “Sell in May” period) from May through October has been followed by great gains for both frequency and magnitude. There is just one month left in this Worst Six Months period. So if the market can log further gains in October and not succumb to often self-fulfilling prophecy of Octoberphobia and the curse of the 7th year that would be a solid indication for stronger gains for what is referred to as the Best Six Months for the market (November to April) and 2018. We currently sit at +5.3% for the S&P 500 since the close of April 2017. Not bad, but not great, and right on the cusp of the level of Worst-Six-Months gains the have been more often followed by big upside moves. Look at the table below of “Not Bad” Worst Six Months and how the market performed for the next six months.
