Here’s an interesting off the wall factoid:
Trading at 1,850, the S&P 500 (SNP: ^GSPC) is up 0.09% year-to-date (YTD).
If Wall Street were only open on Tuesdays, the YTD S&P 500 (NYSEArca: SPY) gain would be 6.80%. In 2014, Tuesday is the only profitable day of the year.
The first chart shows the S&P 500’s YTD performance in daily bars and percentage.
The second chart shows the S&P 500’s performance by day of week.
Why do Tuesdays hog all of the gains? Who knows?
We do know that this is a 2014 phenomenon. Historically, Wednesday is the best day of the week (by a small margin) and Monday by far the worst day of the week (based on data going back to 1952).
I would categorize this anomaly as curious, not predictive.
But there are other incredibly helpful patterns.
For example, historical price action shows strong bearish seasonal forces arriving in April.
Here’s an S&P 500 seasonality chart that shows seasonality dropping off a cliff:
Historic S&P 500 Seasonality is About to Turn Ugly (hint: look at date of article)
Simon Maierhofer is the publisher of the Profit Radar Report. The Profit Radar Report presents complex market analysis (S&P 500, Dow Jones, gold, silver, euro and bonds) in an easy format. Technical analysis, sentiment indicators, seasonal patterns and common sense are all wrapped up into two or more easy-to-read weekly updates. All Profit Radar Report recommendations resulted in a 59.51% net gain in 2013.
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