Monthly Strength Period Comes Through Again!

After two straight down weeks, the market had a very positive week this week. The weekly pattern of the ‘monthly strength period’ (typically the last trading day of the month and first four trading days of the next month), came through again.

As I posted earlier this week, “The S&P 500 was up 29.4 points or 2.3% for the month of January. But the gains on just the first four days of the month, and the last day of the month, totaled 29.8 points. . . . In 2010, the S&P 500 gained 142.5 points, or 12.8% for the year. But its gains on just the first three days of each month totaled 228.9 points, or 20.5%.”

This week most of the gain took place on Monday, the last day of January, and only the first day of the new month (Feb). The S&P 500 gained a big  $31.20 (2.5%) for Monday and Tuesday, and added only $4.50 (0.3%) over the last three days of the week.

So the pattern of the last year or more continued, of the ‘monthly strength period’ being positive as usual, but the biggest part of the gain by far being in the even smaller window of the first two or three days.  

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