WS #16616
Despite the current sell-off, the S&P 500 (SPY) is entering its historically strongest month, November, which typically sees a 'Santa Claus' rally. However, the current magnitude of the tech and crypto sell-off is testing this seasonal trend. If the AI monetization crisis deepens, it could override seasonal tailwinds, leading to a prolonged period of volatility. Investors are closely watching for signs of a bottom in tech and crypto to confirm the start of the seasonal rally.
Market Seasonality and Defense
Despite the current sell-off, the S&P 500 (SPY) is entering its historically strongest month, November, which typically sees a 'Santa Claus' rally. However, the current magnitude of the tech and crypto sell-off is testing this seasonal trend. If the AI monetization crisis deepens, it could override seasonal tailwinds, leading to a prolonged period of volatility. Investors are closely watching for signs of a bottom in tech and crypto to confirm the start of the seasonal rally.