- If the stock market is up during the first five days of the year, it should be a good year for the stock market.
- Others look at the entire month of January as an indicator for the year.
We think the reason that more people aren't screaming about this indicator -- is because inside, they are bearish. The stock market scared a lot of people -- and that fear still exists. The stock market continues to climb the "Wall of Worry" that we talk about regularly. The existence of fear -- and bears -- gives the "contrarian" inside of us reason to believe that this market has more room to rise.
Our long-term stock market indicators remain bullish. Our overbought/oversold indicators are currently mildly bearish -- so we have a neutral to slightly long outlook on stocks.