It's the Seasonality of Things

The summer months often are an exciting time for kids and educators but this is often a an exciting time to be a trader as well.

There are only a few times each year traders can really look forward to year after year.  Historically June, July and August are very strong months for returns based on available data going back to 1924.  This year is no different as we have already seen the $SPX skyrocket to new highs and blow through the 1940.00 level just weeks into the summer months.  Although, Monday we saw the S&P reach new highs, Tuesday saw a mixed trading day as we saw stocks make big moves early and then proceed to consolidate for the remainder of the day.

While the S&P is well above the 50 day and 200 day moving averages a slight correction may be in store testing the 1940 range before pushing higher.  Many news outlets are worried about possible lulls in the market with low volume, but a small pullback may be just what's needed to get us all excited like kids on the first day of summer.