Stock Trader's Alamanac 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, this year S&P 500(INDEXSP: .INX) disappointed many by remaining nearly flat in December.

Jeff Hirsch, Editor at The Stock Trader's Almanac, was on CNBC Tuesday 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 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 5 days in the January probably the full month and when all three are down its, we have had only one up year, it was [19]82 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, a 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 will wait till 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 2016,” Hirsch added.