The S&P 500 got off to a rough start to the year with a 3% decline in January. The index has been straight up in February, though, and it’s now up roughly 2% on the year.
Where have we seen this action before? Look no farther than last year. The index fell 2.93% in January, declined a couple of more days to start the month of February, and then it was straight up for the rest of the month.
Below is a chart showing the S&P 500’s action through President’s Day of both 2014 and 2015.
For those interested, below we have continued the 2014 performance chart out to the end of June. Eventually the February rally ran out of steam last year, and the S&P went on to trade sideways from March through early May before making another big leg higher in June.