A late day rally allowed the Dow Jones Industrial Average to close the day and month above the new Mendoza line of 8,000. However, the drop of 775 points, 8.84%, for the month is a bad omen as the January performance of the Dow has accurately predicted what it will do for the year 75% of the time according to Dow Jones. In the last 30 years that percentage is 86% and even though a couple of those anomalies occurred recently, such examples usually involve marginal moves for the month. This year the Dow had it worst January performance in its 113-year history in 2008.
You may want to remember that the next time someone tries to convince you the bottom is in.
