January Indicator Indicates 50/50 Chance of Gains in 2014
SPDR S&P 500 (NYSE: SPY) fell 0.4% last week and was down 3.52% for the month.
SPDR Dow Jones Industrial Average (NYSE: DIA) was down 5.2% for the month.
According to a popular interpretation of the January Indicator, this makes the widely followed market forecasting tool bearish for 2014. But history doesn't support this interpretation of the indicator. In the past, a negative performance for the Dow in January has occurred 22 times since 1950, and a down month had been followed by declines in the rest of the year 50% of the time. (more)
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The market has once again opened on a flat note. The Sensex is up 20.52 points at 20281.55, and the Nifty up 5.95 points at 6028.35. About 260 shares have advanced, 61 shares declined, and 10 shares are unchanged.
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