Today’s Factor Seasonal Charts offer solace to traders worried about this week’s market drops. Take a look at the regular seasonal trend lines (in GREEN) for all three indexes – the Dow Jones, S&P 500 and NASDAQ. Notice how January tends to see 1-2 drops before running up into February.
This is exactly the patterns we’re seeing right now in the current market action (shown in YELLOW).
Folks, these trend projections have been running remarkably accurate all year long. And we’re seeing significant support for the two-three month trend projections (in ORANGE) for these indexes.