The January Barometer states that as the S&P 500 goes in January, so goes the year. In other words, if the month of January closes down, there is a good chance the S&P 500 will close down for the entire year.

The January Barometer was created by Yale Hirsch in 1972, and according to the Stock Traders Almanac, the January Barometer has registered only eight major errors since 1950 for an incredible 87.7% accuracy ratio. However, according to Wikipedia, after 1985, the negative predictive power had been reduced to 50%, or in other words, no predictive power at all.

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