As of today’s close, this pre-election year March is below average when compared to it historical performance.
Strong market performance in pre-presidential-election year frequently translates into above average performance for individual months. March is a month that typically enjoys a nice boost, but so far it has not occurred. Prior to the gains of today and yesterday, this March was well off its average levels. This March and past pre-election year average performance has been plotted in the chart above and the gap in performance is readily visible.
Strong gains in January and February had major indexes right at key resistance levels at the start of the month and when they failed to break out profit taking ensued. Slowing global growth, naming in China and the EU along with ongoing trade concerns and last Friday’s tepid jobs report have all weighed on stocks. Heavy selling of DJIA’s(NYSEARCA:DIA) largest component, Boeing (BA) has kept that index in check this week. Despite sign of slowing growth, the US economy is still on relatively firm ground when compared to other regions. Further market gains are likely, but progress is probably going to be choppy.