7 Holiday Effects In the S&P 500 (Trading Seasonality)

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In this article, we look at seven holiday effects and anomalies in the US and how the S&P 500 performs before and around these holidays. The holiday effect seems to be significant for Independence Day, Thanksgiving, and Christmas.

What is the holiday effect?

The pre-holiday effect is a seasonal effect, we can also call it a calendar effect, which tends to give increased returns in stocks over a short period of time. These situations tend to happen around holidays, like for example the 4th of July. The days before the holiday, but often also the days right after the holiday, are assumed to show consistent positive patterns and returns.

Please click here to read about holiday effects in the S&P 500.