The Seasonality Forecast: Why May, June, and July 2026 May Be the Strongest Three-Month Window of the Year

Key Takeaways

 

S&P 500 Index Total Percent Returns — Full Transcription

Year

Jan

Feb

Mar

Apr

M

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Yearly Return

Average

0.99%

0.87%

0.48%

1.60%

0.25%

0.85%

2.82%

-0.30%

-0.66%

2.13%

2.90%

0.55%

2026

1.37%

-0.87%

-5.09%

9.22%

4.16% YTD

2025

2.70%

-1.42%

-5.75%

-0.76%

6.15%

4.96%

2.17%

1.91%

3.53%

2.27%

0.13%

-0.05%

16.39%

2024

1.59%

5.17%

3.10%

-4.16%

4.80%

3.47%

1.13%

2.28%

2.02%

-0.99%

5.73%

-2.50%

23.31%

2023

6.18%

-2.61%

3.51%

1.46%

0.25%

6.47%

3.11%

-1.77%

-4.87%

-2.20%

8.92%

4.42%

24.23%

2022

-5.26%

-3.14%

3.58%

-8.80%

0.01%

-8.39%

9.11%

-4.24%

-9.34%

7.99%

5.38%

-5.90%

-19.44%

2021

-1.11%

2.61%

4.24%

5.24%

0.55%

2.22%

2.27%

2.90%

-4.76%

6.91%

-0.83%

4.36%

26.89%

2020

-0.16%

-8.41%

-12.51%

12.68%

4.53%

1.84%

5.51%

7.01%

-3.92%

-2.77%

10.75%

3.71%

16.26%

2019

7.87%

2.97%

1.79%

3.93%

-6.58%

6.89%

1.31%

-1.81%

1.72%

2.04%

3.40%

2.86%

28.88%

2018

5.62%

-3.89%

-2.69%

0.27%

2.16%

0.48%

3.60%

3.03%

0.43%

-6.94%

1.79%

-9.18%

-6.24%

2017

1.79%

3.72%

-0.04%

0.91%

1.16%

0.48%

1.93%

0.05%

1.93%

2.22%

2.81%

0.98%

19.42%

2016

-5.07%

-0.41%

6.60%

0.27%

1.53%

0.09%

3.56%

-0.12%

-0.12%

-1.94%

3.42%

1.82%

9.54%

2015

-3.10%

5.49%

-1.74%

0.85%

1.05%

-2.10%

1.97%

-6.26%

-2.64%

8.30%

0.05%

-1.75%

-0.73%

2014

-3.56%

4.31%

0.69%

0.62%

2.10%

1.91%

-1.51%

3.77%

-1.55%

2.32%

2.45%

-0.42%

11.39%

2013

5.04%

1.11%

3.60%

1.81%

2.08%

-1.50%

4.95%

-3.13%

2.97%

4.46%

2.80%

2.36%

29.60%

 

The Statistical Case: May, June, and July in 2026

May — The Misunderstood Month

The "Sell in May" adage has a historical basis: since 1945, the May–October window averages only +2.1% versus +7% for November–April per CFRA's Sam Stovall. But recent history inverts that narrative entirely. Over the last 12 years, May–October has averaged +5.1% (LPL Financial). More specifically:

May: 12 of the last 13 years GREEN

Looking at the transcribed table: May was positive in 2013 (+2.08%), 2014 (+2.10%), 2015 (+1.05%), 2016 (+1.53%), 2017 (+1.16%), 2018 (+2.16%), 2020 (+4.53%), 2021 (+0.55%), 2022 (+0.01%), 2023 (+0.25%), 2024 (+4.80%), 2025 (+6.15%). The sole red May was 2019 (-6.58%), which followed a significant April run and was triggered by a sudden escalation in US-China trade tariffs. The average May return across the table is +0.25% — modest, but the win rate is what matters.

2026 May Setup: April 2026 delivered +9.22%, the strongest April since the COVID rebound month of April 2020 (+12.68%). In 2020, the month after a +12.68% April was May +4.53%. In 2024, after a -4.16% April, May still recovered to +4.80%. The base rate strongly favors a positive May 2026.

June — Quietly Strong

June: 9 of the last 10 years GREEN

The table shows June was positive in 2013 (-1.50% — the exception), 2014 (+1.91%), 2015 (-2.10%), 2016 (+0.09%), 2017 (+0.48%), 2018 (+0.48%), 2019 (+6.89%), 2020 (+1.84%), 2021 (+2.22%), 2022 (-8.39% — the exception), 2023 (+6.47%), 2024 (+3.47%), 2025 (+4.96%). The average June per the full table is +0.85% — the second-best month of the three. Over the past decade, June 2022's -8.39% was the lone major exception, driven by the most aggressive Fed rate-hiking cycle in 40 years — a condition that does not exist in 2026 with the Fed holding at 3.5%–3.75% and projected to cut.

2026 June Setup: JPMorgan's trading desk data shows the S&P 500 has averaged a 1.9% gain in June over the last decade. The Fed is expected to deliver its first rate cut in H2 2026, with June FOMC being a key catalyst date. Rate cut expectations historically create a tailwind for equities in the weeks leading into and following the announcement.

July — The Crown Jewel

July: 11 of the last 11 years GREEN

This is the most statistically powerful single-month streak in the entire seasonality table. Looking at the data: July was positive in 2015 (+1.97%), 2016 (+3.56%), 2017 (+1.93%), 2018 (+3.60%), 2019 (+1.31%), 2020 (+5.51%), 2021 (+2.27%), 2022 (+9.11%), 2023 (+3.11%), 2024 (+1.13%), 2025 (+2.17%). The average July return in the table is +2.82% — the highest of any month. Even in 2022, the worst year in the table (-19.44% yearly), July delivered +9.11%.

Why July Works: Carson Group's analysis identifies July as the heart of Q2 earnings season. "Every year we come into the year with all the bowtie-wearing economists telling us how bad everything is… yet by the time we get around to second quarter earnings it becomes abundantly clear there is no recession coming and stocks soar." July 2026 will feature Q2 earnings from the Magnificent 7, major banks, industrials, and healthcare — a historically catalyst-rich environment.

 

Group 1: Technology and AI — May–July's Consistent Leaders

Historical basis: Technology has outperformed the S&P 500 in 90% of all post-correction scenarios per SentimenTrader. The sector leads during earnings season, which accelerates in July. In 2025, tech drove the entire May–July window with the S&P returning +6.15%, +4.96%, and +2.17%.

Stocks: NVDA  | MSFT  | GOOGL  | META  | AMZN  | AAPL  | AMD  | AVGO  | PLTR  | CRM

High Probability of Going Up (May–July)

NVDA, MSFT, GOOGL, META, AMZN  — all report Q2 earnings in late July, which historically triggers the strongest single-session moves of the year.

Caution in May

ADBE  and CRM  remain at depressed multiples and need earnings catalyst confirmation before trend reversal. Both report in May/June.

 

Group 2: Financials and Payments — June's Seasonal Driver

Historical basis: Financials historically outperform in Q2 as loan volumes, investment banking, and trading revenues are reported. The sector is a consistent June and July outperformer, benefiting from steepening yield curves and earnings surprise potential.

Stocks: JPM  | GS  | MS  | V  | MA  | FISV  | AXP  | BLK

High Probability of Going Up (June–July)

Major banks report Q2 earnings in mid-July — JPM, GS, MS . Their earnings season launch historically sets the tone for the entire July rally. 

V  reported a +8.26% single-day gain on April 29, 2026 on strong consumer spending — that momentum is a June–July seasonal tailwind.

Monitoring Risk

Credit quality deterioration from the weakening LEI could create spread widening in bank loan portfolios — a modest headwind for 

BAC  and regional banks.

 

Group 3: Consumer Discretionary — The July Earnings Accelerator

Historical basis: Consumer discretionary outperforms in 91% of instances over the following year after a correction low, per SentimenTrader. The sector benefits from the Q2 earnings season where consumer spending data is reported. Retail, restaurants, and travel names are seasonally strong in July.

Stocks: AMZN  | TSLA  | HD  | MCD  | CMG  | SBUX  | BKNG  | ABNB

High Probability of Going Up (May–July)

BKNG  and ABNB

 are the summer travel plays — booking data for summer 2026 vacations peaks in May and June, directly boosting these stocks before Q2 earnings confirm the revenue. 

CMG  has conservative 2026 guidance that sets a positive earnings surprise setup for July. 

SBUX  reported +8.45% on April 29, 2026 — positive momentum entering May.

Lower Probability in May

NKE  and LULU

 remain under structural pressure from tariffs and margin compression; seasonal tailwinds alone are insufficient to reverse their downtrends.

 

Group 4: Industrials — The AI Infrastructure Summer Build

Historical basis: Industrials outperform in the May–July window as construction activity peaks seasonally and defense/infrastructure contract announcements cluster around mid-year government budget cycles.

Stocks: CAT | PWR  | EME  | GEV  | FIX  | MTZ  | NOC  | RTX

High Probability of Going Up (May–July)

PWR and EME  are in the middle of a multi-year AI power grid buildout cycle — their backlog does not slow in summer. 

GEV  (GE Vernova) hit 52-week highs earlier in 2026 and was cited by Morningstar as one of the top 6 rotation leaders. 

Defense names NOC  and RTX  benefit from elevated geopolitical tension related to the Iran conflict maintaining defense budget tailwinds.

 

Group 5: Defensives — May Rotation Before the Summer Accelerates

Historical basis: In the early weeks of May, defensive rotation often peaks as investors position cautiously before the seasonal data confirms the summer rally thesis. By June and especially July, defensives tend to give back leadership to growth and cyclicals. In 2026's specific context, the LEI-to-CEI divergence creates an unusual dynamic where defensives have stronger fundamental support than a typical seasonal cycle would suggest.

Stocks: WMT  | COST  | PG  | JNJ  | ABT  | NEE  | XOM

High Probability of Going Up in May, Then Underperforming July

WMT  and COST  are the strongest defensive-seasonal plays: consumer staple demand is stable, and both companies report May/June earnings that historically beat estimates. 

NEE  benefits from increasing AI data center power contract announcements through the summer.

 

High vs. Low Probability Summary Table

Highest Probability of Going Up — May Through July 2026

Stock

Ticker

Peak Month

Key Catalyst

Nvidia

NVDA

July

Q2 earnings; AI capex commentary

Microsoft

MSFT

July

Azure AI revenue growth Q2 report

Alphabet

GOOGL

July

Q2 earnings; ad revenue recovery

Meta

META

July

Q2 earnings; Llama AI monetization

JPMorgan

JPM

July

Bank earnings season launch

Booking Holdings

BKNG

May–June

Summer travel booking surge

Chipotle

CMG

July

Conservative guidance; positive surprise

Quanta Services

PWR

May–July

AI power grid backlog; no seasonality risk

Amazon

AMZN

July

Q2 earnings + Prime Day July catalyst

Visa

V

June–July

Consumer spending recovery; momentum

Highest Probability of Underperforming May–July

Stock

Ticker

Risk Factor

Nike

NKE

Structural tariff pressure; no seasonal override

Lululemon

LULU

Margin compression; North America slowdown

Novo Nordisk

NVO

GLP-1 competition; 60% off peak; no near-term catalyst

Kraft Heinz

KHC

Secular decline; no seasonal tailwind

General Mills

GIS

Volume erosion; flat guidance

Long-Duration Treasuries

TLT

Fiscal supply overhang; risk-on summer reduces safe-haven bid

 

10 Associated ETFs

ETF

Name

Exposure

Ticker

SPY

SPDR S&P 500 ETF

Broad S&P 500 — the core seasonal vehicle

SPY

QQQ

Invesco Nasdaq-100 ETF

Tech/AI leadership; strongest May–July sector

QQQ

XLK

Technology Select Sector SPDR

Pure tech sector; earnings-driven July rally

XLK

XLF

Financial Select Sector SPDR

Banks; Q2 earnings season launch

XLF

XLY

Consumer Discretionary SPDR

Travel, retail, restaurants — summer peak

XLY

XLI

Industrial Select Sector SPDR

Infrastructure + defense summer cycle

XLI

SMH

VanEck Semiconductor ETF

AI chips; 11-of-11 July positive in current streak

SMH

SOXL

Direxion Daily Semiconductor Bull 3X

Leveraged semi upside in seasonal window

SOXL

XLP

Consumer Staples SPDR

May defensive positioning before summer rotation

XLP

TECL

Direxion Daily Technology Bull 3X

Leveraged tech for confirmed summer rally trades

TECL

 

2026 Predictions by Month and Group

May 2026 Predictions

S&P 500 Base Case: +1.5% to +3.5% | Historical win rate: 12/13 (92%)

June 2026 Predictions

S&P 500 Base Case: +1.5% to +3.0% | Historical win rate: 9/10 (90%) | Key catalyst: June FOMC

July 2026 Predictions

S&P 500 Base Case: +2.5% to +4.5% | Historical win rate: 11/11 (100%) | Key catalyst: Q2 Earnings Season

ETF Predictions Summary Table

ETF

May Trend

June Trend

July Trend

Volatility

SPY

UP

UP

UP

MODERATE

QQQ

UP

UP

STRONGLY UP

HIGH

XLK

UP

UP

STRONGLY UP

HIGH

XLF

SIDEWAYS TO UP

UP

UP

MODERATE

XLY

UP

UP

UP

MODERATE-HIGH

XLI

UP

UP

UP

MODERATE

SMH

UP

UP

STRONGLY UP

HIGH

SOXL

UP

UP

PARABOLIC UP

EXTREME

XLP

UP EARLY, FADES

SIDEWAYS

UNDERPERFORMS

LOW

TECL

UP

UP

STRONGLY UP

EXTREME

 

The One Risk: What Breaks the Seasonal Pattern

Every negative May, June, or July in the historical data had a specific external shock behind it:

The current 2026 setup has none of these triggers active. The Iran ceasefire reduces geopolitical tail risk in May. The Fed is on hold and projecting cuts. Trade tensions are declining. The seasonal pattern has a clear runway.

 

Tickeron AI Trading Bots and Financial Learning Models — Timing the Seasonal Window

Seasonality is a probability distribution, not a guarantee. The 11-of-11 July win rate is statistically compelling, but the question for any individual retail trader is not whether July will be green on average — it is which stocks, in which weeks, offer the best entry points to capture the seasonal move.

Tickeron's AI Trading Bots and Financial Learning Models answer that question with precision that calendar-based seasonality alone cannot provide. The FLMs integrate seasonal probability data with real-time trend confirmation signals — ensuring that entries are taken when both the seasonal tailwind and the price trend are aligned, and exits are triggered when price diverges from the seasonal pattern before the retail investor typically notices.

DELL AI Trading Agent: +265% annualized return, 82.31% win rate on a 5-minute timeframe — the precision trading instrument for capturing the intraday momentum that characterizes the early days of July's Q2 earnings releases.

Semiconductor Leaders Agent (covering NVDA, AVGO, AMD, TSM, MU): +78.26% annualized return, 60.75% win rate — specifically positioned in the sector with the strongest July seasonal record.

Semiconductor Manufacturing Agent (covering LRCX, TER, AMAT, KLACAMKR, ASML): +112.88% annualized, 72.93% win rate.

AI Agents in GGLL, SOXL, TECL: Delivering 215%+ annualized returns — the leveraged ETF agents that are directly positioned in the three most seasonally powerful instruments for a confirmed summer rally environment.

Tickeron's Financial Learning Models (FLMs) — described by CEO Sergey Savastiouk, Ph.D. as "the next breakthrough in Financial Learning Models — delivering faster cycles, deeper learning, and far more accurate trade execution" — incorporate seasonal probability weighting as one input among dozens. When seasonality, trend direction, sector rotation, and earnings calendar all align simultaneously — as they do in the May–July 2026 window — the FLMs generate their highest-conviction signals.

The Tickeron Trend Prediction Engine at 

tickeron.com/stock-tpe/

 delivers an 80% accuracy rate over a 14-day window — perfectly calibrated for the two-week momentum windows that define each month's strongest seasonal move (historically the first half of July, per E*TRADE's intramonth data).

Explore all active AI Trading Agents at 

tickeron.com/app/ai-robots/virtualagents/all/

 

Educational Disclaimer

This report is provided for informational and educational purposes only and does not constitute investment advice, a solicitation, or a recommendation to buy or sell any security. All investments involve risk, including the possible loss of principal. Seasonal patterns and historical win rates referenced in this report are based on past market behavior and are not guarantees of future performance. Individual stock and ETF performance may differ materially from historical seasonal averages based on company-specific events, macroeconomic conditions, or geopolitical developments. Past performance of AI trading agents, including annualized return statistics cited in this report, is not indicative of future results. Leveraged ETFs such as SOXL and TECL are not suitable for long-term holding and carry substantial risk of loss. Retail investors should conduct independent due diligence and consult a qualified financial advisor before making investment decisions.

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