Stocks Weaker After Memorial Day Recent Years

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’ 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’ Almanac
. But this bear market rally could pause next week
as stocks flirt with resistance levels today at DJIA 33000, S&P 4100 &
NAS 12000.

Leave a Reply

Your email address will not be published. Required fields are marked *