January has been one of the good predictors of how the stock market will perform over the entire year. If the stock market goes up in January, it has a 60% chance of ending higher at the end of the year. So says the article I read. Read How important is January to the stock market?
p.s. I will put in the following day's analysis here. Just press refresh to get the latest analysis.
The beginning of this year seem to have some similarities with the chart pattern exactly one year ago. Below is the chart of Dow Jones in January 2017. We started last year with a consolidation at the 20 MA. The Dow touched its rising 50 MA and then broke out higher in February to start a massive bull run in the stock market.
The chart below is the same chart of Dow Jones but fast forward 1 year to January 2018. It looks quite similar in the sense that we are also going to start the year with a consolidation at the 20 MA.
Is history going to repeat itself?
Will Dow break higher as it touches the rising 50 MA just like last year?
Well, as the saying goes "As January Goes, So Goes The Year". It is just very possible that the Dow Jones will breakout from the consolidation. If that happens then it is good news once again for the bulls.
Charts with the Freestockcharts.com label are courtesy of Freestockcharts.com
Charts with the investing.com logo are courtesy of Investing.com powered by Trading View
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