Stock Trader's Almanac Editor: Bull Market Is Getting A Little Bit 'Tired,' But Not Ready To Call It Over
Most investors consider a rally in the final few weeks of every year, better known as the Santa Claus rally, to be a norm. However, the S&P 500 disappointed many by remaining nearly flat in December.
Jeff Hirsch, Editor at The Stock Trader's Almanac, was on CNBC Monday to discuss the implications for the overall market when the Santa Claus Rally doesn’t take place.
Significance Of The Santa Claus Rally
"Well, it has only been a down Santa Claus rally in the S&P about 13 times since 1950; it's not a death nail for the market," Hirsch said. "We like to combine all three early indicators with the first five days in the January barometer the full month and when all three are down, we have had only one up year -- that was  after a big correction, so, otherwise four down, three flat. So, it's not a great sign, but it's not the end, will be nice to see some positive action the rest of this week and for the month."
How Important Is January?
"January barometer is the whole month of the year, the whole month for S&P, the whole month of January. The January effect is small-caps outperforming the large-caps in January, which has shifted and we are still seeing some of that, but we'll wait until the end of the month to really change our outlook -- ours is kind of positive […] and I have a outlook for more upside in the first half. I think, the bull market is getting a little bit tired, but I am not ready to call it over. I think there is some upside here through 2015," Hirsch added.
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