Week Before Labor Day Historically Soft

Although the end of August has been improving over the past ten years, the week before Labor (this year it is entirely in August) has a much weaker track record over the past 17 years. DJIA, S&P 500 and NASDAQ have all averaged a weekly loss.

However, small caps, measured by the Russell 2000, have fared better advancing in 11 of 17 years with an average week before Labor Day gain of 0.5%. Years in which the week before Labor Day was entirely in August are shaded in the table below. Absent bullish first-trading-day-of-the-month tendencies, these weeks are notably weaker.

By Christopher Mistal