Chart of the Day

As goes January, so goes the year. This particular phenomenon is what is referred to as the January Barometer. To test this theory, today?s chart presents the average performance of the S&P 500 one, three, six, and 11 months following a January gain (blue bars) and following a January loss (gray bars). The chart illustrates that the S&P 500 has performed much better (on average) during the months following a January gain. In fact, 11 months following a January gain; the S&P 500 was up 88% of the time.

Notes:
- The S&P 500 was up 2.5% in January 2006.