By Matthew Kerkhoff
It's the final trading day of January, and it appears markets will close the month in negative territory. Both the Industrials and the broader S&P 500 are down over 3% to start the year. A negative monthly close for January marks the first consecutive back-to-back monthly decline (red circle in chart below) in the S&P 500 since mid 2012 . We are seeing a slowing of upward momentum, reinforced by a bearish crossing of the monthly MACD (blue circle) but that does not mean all is lost. As you can see in the chart below, we've had three other episodes of consecutive monthly declines and neither of those signaled an end to the bull market. The upward sloping blue trendline remains intact.
Lots of economic data has been released over the past couple of days which, on balance, points toward continued growth ahead.
The initial reading on GDP growth for the fourth ... Log in or subscribe to continue reading.