Historically, stocks tend 'start' getting soft this time of year. Below looks at the average performance of the S&P 500 during the month of August over the past 10 and 20 years.
The typical August decline is not dramatic, for sure, as a 1% decline is nothing to get too concerned about. Below looks at where a few key indices (S&P, Banks, Small Caps and Transports) find themselves at this time.
As mentioned above, each index remains in an uptrend and is above its 200-day moving average. Despite August and September historically being soft, so far August is on course, as little softness has taken place.
It's important to note that each index finds itself at a price point at each (1), where bulls really don’t want to see selling pressure at this time of year.