January barometer

The January barometer ("As goes January, so goes the year"[1]) is the hypothesis that stock market performance in January (particularly in the U.S.) predicts its performance for the rest of the year.

So if the stock market rises in January, it is likely to continue to rise by the end of December.

The January barometer was first mentioned by Yale Hirsch in 1972.

[2] Historically, if the S&P 500 goes up in January, the trend will follow for the rest of the year.

From 1950 till 1984 both positive and negative prediction had a certainty of about 70% for positive outcomes and 90% for negative ones respectively with 75% in total.