Early Year Stock Market Indicators Try to Predict Returns, But Following Price Action Most Important
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The January Barometer stock market indicator suggests if the S&P 500 is up in January, it will have a positive year. The indicator has a 83.6% accuracy rate since 1950.
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Other early year indicators like the First Five Days and Santa Claus rally also try to predict the market's performance.
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Sentiment indicators like the VIX and Investor Intelligence survey provide insights into market psychology.
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Watch leading stocks breaking out past buy points daily in resources like IBD's Big Picture column, Breaking Out Today list, and Stock Lists.
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Indicators help but analyzing price and volume action of major indexes is still most important when timing the market.