January’s 5.6% gain makes the rest of the year looks bright according to the January indicator. 

The logic of the January indicator, according to aficionados, is as follows: 

January Indicator

And the payoff for the rest of the year appears rich:

January Indicator

 

But can high odds of a rich payoff result from such a simple forecasting method?

Yes, according to a Wall Street technician who was quoted recently in Barron’s, … the historical ‘facts and figures’ are what they are. The data is the data.