While past week marked the end of the first half of the year, what can we expect as we enter the second half? Chris Verrone, technical analyst at Strategas Research Partners, released a note pointing out that stocks are "approaching the more difficult stretch of the calendar." Verrone pointed out that the average performance of both the S&P 500 and Nasdaq 100 over the last 30 years typically trade lower during the upcoming 4-month period —a slight adjustment to the “Sell in May and Go Away” Wall Street adage of old. While equities have risen about 9% the first half of the year, “defensive” assets such as gold and bond prices have also climbed. This suggests to Mr. Verrone that a significant number of investors are skeptical of the eight-year bull market. Other analysts shared similar research. Robert Sluymer, technical analyst with Fundstrat Global Advisors wrote in a note, “Our monthly cycle data continues to support a more cautious technical outlook heading through the summer into the fall.”
