The week after Memorial Day performed quite well 1971-95.
DJIA & S&P up 68% of the time, averaging 0.8% – DJIA up 12 in a row 1984-95.
NAS was up 72% of times, average 0.6%, up 10 straight 1986-95. Since 1979 R2K was
up 88% of times, average 0.9%, up 13 straight 1983-95.
Starting in 1996 the week after Memorial Day performance
diminished. DJIA was up only 42% of times, average 0.02%, down 8 of last 12.
S&P, NAS & R2K all gained ground less than 60% of the time, down 6 of
last 12. Huge gains this week in 2000 skew the averages.
Stock Trader’s Almanac page 100 tracks behavior before & after holidays
since 1980. Days after Memorial Day show positivity. But weakness increased the
last 21-years the 3 days after Memorial Day. Day after Memorial Day DJIA &
NAS down 5 of last 7, S&P down 6 of last 7.
DJIA is on pace to snap its 8-week losing streak. S&P
and NASDAQ are set to end their 7-week losing streaks. But all three are already
up over 4% from their May lows in just a few days. Russell 2000 has rallied 7%
from its 5/11 low.
June’s bullish tendency during the first couple days is visible
in the “June Almanac” on page 58 of the 2022
Stock Trader’s Almanac. But this bear market rally could pause next week
as stocks flirt with resistance levels today at DJIA 33000, S&P 4100 &