As May trading begins, Wall Street strategists are reevaluating the traditional 'sell in May and go away' adage, with many arguing that the current market, driven by policy and economic uncertainty, does not align with historical seasonal trends. The S&P 500 closed April down by 0.76% and is down 5.3% year-to-date, yet it cleared two key bullish milestones late last week. Despite this, bears are hopeful for a failure at the 200-day moving average or at the 5800 level. The market's fragility and geopolitical catalysts, including US-China trade talks, add to the complexity of the current environment. In post-election years, the S&P 500 has historically gained in May 85% of the time, averaging a 2.13% increase, suggesting that the 'sell in May' strategy may not be as effective this year.
SPX Liquidity & Flow Breakdown – May 6 1/ Price: 5650 (-0.64%) • Gamma: Negative • Put/Call OI Ratio: 1.62 • Momentum: Bearish • 1D Expected Move: ±1.18% Options market shows defensive positioning & short gamma risk. Volatility can spike fast. https://t.co/0eH4aGvngY
Most will remember April for the market’s turbulence. We’ll remember it for the clarity it brought. My May 2025 Market Commentary posted here: https://t.co/l3K2NrUGaj
$SPX #0DTE #Gamma Open Interest https://t.co/fhWS44LuTm