FINANCIAL ICEBERG
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 SP500 Seasonalities
SP500 Index Seasonalities: All hope on the January Effect ?
​January 4 ( From TradingView, Stockcharts, Investopedia  )



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SP500 Index Seasonalities: All hope on the January Effect ?    $SPY, $SPX,   #Trading #Seasonalities #SP500 #spy
Daily Chart - Seasonalities - Daily Performance in % of SP500 Index - Average of the past 5 years
January 1st pegged at 100

.( See chart below )

Monthly Chart - Seasonalities - Monthly Performance in % of SP500 Index - Average of the past 5 years


.( See chart below )
Financialiceberg.Com
The Situation

​​January Market Seasonals (SP500)

The Month of January is also very special in terms of Seasonalities
​as the whole ​Market is more trendy than usual and less volatile than
the month of December​ according to the past 5 years.

​​From a bottom at the end of December, the market is usually in a
​painful grind til January 22 and then correct slightly til the end of the month.

​The Trade Pattern ​is to finally to have ​a close above the beginning of the ​month ​for the Mighty SP500 ​​Index. So a good Technical Pattern it is for the month of ​January...
​​
​​This move is generally compounded because seasoned traders know about ​this seasonal movement and also buy positions and get long the market ​to take advantage of this at times for the usual January Effect.

Most of the January up move is done by the 22 of the month according to the average of the past 5 years. 
( See first chart below ).​​​

On a monthly basis, January is an average month​​ in terms of performance and February is a very good one according to the average of the past 5 years,  ​( See second chart below ).​​​

As written by Cory Mitchell: ​​Seasonality is a tool to be used in conjunction with other technical signals; it typically isn't used as a trade signal on its own. It does help isolate times that may be more favorable for buying or selling though.