Typical October Trading: Volatile Start Sets Up Rally through Month’s End
Over the last twenty-one years, the full month of October has been a solid month for the market. DJIA, S&P 500, NASDAQ, Russell 1000 and Russell 2000 have all recorded gains ranging from 0.6% by Russell 2000 to 1.9% by NASDAQ. But these gains have come with volatile trading, most notably during the early days of the month. October has opened softly with mild gains on its first trading day by DJIA, S&P 500 and Russell 1000. On the second day, all five indexes have been weak followed by a rebound on the third trading day before additional weakness pulls the market lower through the seventh trading day. At which point, the market has historically found support and began to rally through mid-month and beyond.
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