CHART OF THE DAY: The stock market typically bottoms near the end of October before staging a year-end rally

• The stock market has a tendency to hit its bottom in late October, according to Ned Davis Research.
• Seasonality data shows that the stock market is about to exit its weakest period of the year.
• This dynamic could set the stock market up for a year-end rally, according to Ned Davis Research.

Our Chart of the Day is from Ned Davis Research, which highlights the stock market's seasonality pattern towards the end of the year.

The chart looks at the median percentage change of the Dow Jones Industrial Average every year from 1900 through 2022, encapsulating more than 120 years of market history.

The chart shows that the stock market typically bottoms towards the end of October before staging a strong year-end rally.