Election Uncertainty Could Stall April Stock Market Gains Heading Into May

April is historically a strong month for markets, but strength often stalls into May during election years due to uncertainty.

Presidential election years, April tends to be "flattish" which leads into a negative May, while April overall averages 2% gains over the past 30 years.

Elections breed uncertainty, causing investors to "de-risk" ahead of the vote, contributing to weakness.

Small caps are breaking out after years of rangebound price action, technically pointing to further gains.

Small caps tend to follow large caps higher over time, so the recent small cap breakout confirms broader market strength.