"Year-end rally", or "Sell in May and go away" - investors are aware of a certain amount of seasonal lore when it comes to stock indices. But is it real? And if it is, when does the Dow begin its year-end rally? SeasonalCharts.com shows you exactly where the market's seasonal trends can be found. One glance and seasonal relationships are clear.
Equity indices represent a group of stocks, which is why the seasonal trend of an equity index is of great importance to the underlying stocks as well. Market professionals maintain that the seasonal trend of the index is even more important than that of the individual stock, because it is statistically grounded.