EB Daily Market Report - Brief Update - Tuesday, May 5, 2026

Happy Cinco de Mayo everyone!

Historically, today's close marks the end of a rather bullish period from the April 28th close through the May 5th close. Seasonal tendencies aren't what I'd say are bearish over the next 3 weeks, but let's just say they can be challenging. As I mentioned in the May Seasonality Report, May 6th through May 25th has produced an annualized return of -10.31% on the S&P 500 since 1950. Then May typically closes out the month with a bullish bang!

These are just tendencies, not guarantees. Currently, technical conditions are quite bullish and, other than being overbought, are pointing to higher prices ahead.

The small cap IWM is leading today's action, rising 1.78% on the session. Meanwhile, the large cap growth-oriented NASDAQ 100 ($NDX or QQQ) is posting another very strong session as well, gaining nearly 1.5% at last check. 10 of 11 sectors are higher, with only communication services (XLC, -0.50%) in negative territory.

Among industries, renewable energy ($DWCREE, +4.16%), a typical beneficiary of May's strong seasonality, is enjoying a rock solid day, breaking above 400 resistance and adding onto recent gains and bullish behavior. One day after breaking to a fresh 52-week low, the brewers ($DJUSDB, +4.15%) are rebounding nicely, helping to lead consumer staples (XLP, +0.96%) higher.

I want to mention that the ChartList of strong seasonal performers for May is complete and should be on the website later today or early tomorrow. Here is a link and password, so that you can view/download it. Everyone can view the charts in this ChartList, while StockCharts.com members, Extra or Pro, can download the ChartList right into your StockCharts.com account:

May Seasonality ChartList (SEASCL)

Password: SEASCL5449

The ChartList is set up as follows:

Charts 001-012 feature LARGE CAP stocks that show strong seasonality for the month of May over the past two decades, while charts 101-112 are SMALL or MID CAP stocks showing strong May seasonality. In the name, you'll see the number, then the ticker symbol, two percentages, and the estimated next earnings date and time. The first percentage shown is the average May return of that stock over the past 20 years. The second percentage shown reflects how often the month of May has been higher for that stock.

Please be aware that many of these stocks will be reporting today after the close or sometime this week. Holding ANY stock into its earnings report comes with a great deal of risk.

Happy trading!
Tom