First Day Performance of Each Month

Since the late 80s there has been a tendency for the market to rally on the first day of the month.  One theory on why this occurs is that there are often 401k inflows that are put to work on the 1st of the month.   I examined this tendency and broke it down by month here on the blog a few times over the years.  I decided to update the study again today.

$SPX perf by month

The only month that comes even close to July from a Win % and Avg Trade standpoint is February.  I’ll also note that August is the worst performer of any month.

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