Over the last 20 years, the S&P 500 has formed a distinct pattern of strength from the final week of June through the third week of July. It’s one of the most reliable seasonal trends in the market—and this year, it’s getting a big boost from developments far beyond earnings and charts.
Tensions in the Middle East are easing. The Administration appears to be making progress on tariffs ahead of the July deadline. And now, with the S&P 500 breaking out to new all-time highs, another classic “fear of missing out” rally is already gaining momentum. Combine that with the historical seasonality, and the next few weeks could bring a sharp burst of upside.
Let’s take a closer look at the pattern—and how to trade it.
This post originally appeared at Money Morning.