October Strong Starts

Adding on to the comments I posted in the chart below, according to Bespoke Investment Group, " the S&P 500 is currently up 5.05% through the first six trading days of October. Going back to 1928, this ranks as the 8th best start to October (through first six days) for the index, and the best start since 1982".  Bespoke says that from here on end on average in these kind of circumstances the average performance for the rest of the month is 0.08% (median 1.25%), with positive returns 7 out of 11 times..  Their comment on that is from here on till month's end "Not great, but not bad either."  

A pullback and flattish trading for the rest of the month might coincide with my oversold and resistance comments in the chart below.  That kind of trading could set the stage for a rally in the last two months of 2011. 

Link:  Bespoke: Best starts to October.

*Long ETFs related to the S&P 500 in client and personal accounts.