With just three days to go for the New Year, January could tell the tale whether US is entering the bear market territory or not. CNBC's Bob Pisani explains what course Wall Street could likely take next month.
Pisani quotes a famous saying on Wall Street: ‘as goes January, so goes the year.’
"The January Barometer is one of Wall Street's favorite seasonal gauges. According to the Stock Trader's Almanac, it has registered only nine major errors since 1950 and has been accurate 75 percent of the time. But in a year when a lot of old saws are not working, this may or may not be the case in 2018. January saw a gain of 6 percent, but the S&P 500 is down 7 percent so far," he said.
According to him, "Interest for this coming January remains high because every down January on the S&P since 1950, without an exception has either preceded a new or extended bear market or a flat market for the year, or at least a 10 percent correction."