The Tuesday Rally Lives

Since the stock market topped on April 29th, the S&P 500 is down by 8.02%. Yet there’s been an odd exception to the market’s downward trend: the market has done very well, on average, on Tuesdays.

Since April 29th, the market has been open on 25 Tuesdays. Combined, the S&P 500 is up 17.16% on those days. No other day comes close.

My guess is that it’s because the recent sell-off has largely been political in nature which explains why the important news has come over the weekend. In response, Mondays have been down while Tuesdays have been weighted with relief rallies.

Day	Gain/Loss	Std. Dev.	Count
Monday	-4.73%	2.10%	23
Tuesday	17.16%	1.49%	25
Wednesday	-7.86%	1.64%	25
Thursday	-4.34%	1.96%	25
Friday	-6.50%	1.29%	25

Posted by Eddy Elfenbein on October 25th, 2011 at 8:17 am

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