On October 31 the S&P 500 squeezed out a 1.09% gain. That marks the first back-to-back gain for the entire month of October.
Tom Lee, Managing Partner and the Head of Research at Fundstrat Global Advisors, says the "10% decline in 20 days is a 2 standard deviation event." He continues, “the potential for a violent upside rally is substantial."
What's more, if history is any indication the mid-term election could mark a turnaround for US equities. The following chart by Turner Investments shows, on average, the market is up over 15% after mid-term elections. This is materially higher than long-term average returns for the S&P 500.
Causation or correlation? I'm not sure, but I do know the removal of any uncertainty is positive for markets.