Last week, we highlighted the average daily change of the S&P 500 on each weekday during the current bull market that began in March 2009. As noted in the report, Fridays have historically been the weakest day while Thursdays were the best day for equities. Below we take a look at how the S&P 500 has performed on weekdays during 2012 only.
As shown in the table and chart below, so far in 2012, Fridays have been one of the better days for stocks, thus reversing a trend that had been in place for the bulk of the bull market. If an investor was only long the market on Fridays in 2012, their cumulative YTD gain would currently be 5.8%, which makes Fridays the second best day of the week behind Tuesday. In terms of consistency, however, Friday has been the best day of the week with gains nearly 64% of the time.
While Tuesdays and Fridays have been the best day of the week for equities so far this year, Monday has been a day to avoid. As if Mondays were not bad enough in general, the stock market has just made things worse so far in 2012. Year to date, the S&P 500 has been positive on Mondays just 42.4% of the time. Furthermore, investors who were long the market on Mondays only would be staring at a cumulative decline of 3.6%. You may want to make it a three-day weekend!