So far in 2018, every trading day where the S&P 500 has finished the day higher has been a record all-time closing high. Just to show how little downside pressure there has been, in the three days where the S&P 500 did trade lower this year, the cumulative decline was just 17 points! That’s five fewer points than this past Monday’s 22-point gain alone. In total, there have now been twelve record closing highs in 2018, which is already tied for the fourth most in a single month in the index’s history. The record for a single month is 16 back in June 1955, and with just six trading days left this month, the odds are slim that we tie, let alone beat the record.
In the lower chart, we have shown the S&P 500’s performance in the three months that followed each of the prior months where the S&P 500 saw 12 or more record highs in a single month. Of the six prior months shown, the market went on to post further gains five times. The only down period was a 1.9% decline in November 1961, while the five periods where the S&P 500 was positive, the index put up gains ranging from 1.8% to 6.4%.