Strong January Gains Boost Outlook for Stocks Despite Earlier Warning Signs
• S&P 500 is up 2.5% in January, poised to generate a bullish "January Barometer" signal
• January Barometer suggests positive January returns indicate a bull market for the rest of the year
• Santa Claus rally and first 5 trading days were negative, but January gains contradict those bearish signals
• Historically when January was positive but the other signals were negative, stocks rose a median 12% for the rest of the year
• NDR strategist concludes the January strength and bullish model signals support the ongoing cyclical bull market continuing