S&P 500... Why Is 1418.30 So Important?

What's so significant about the 1418.30 level in the S&P? That's the price the S&P closed at last year and according to Yale Hirsch of The Stock Trader's Almanac a down January forecasts a down year for the market with amazing accuracy.

Since 1937 the January Barometer has a near perfect record predicting market direction in odd-numbered years. Every down January on the S&P 500 since 1950, except for 2005, preceded a new or extended bear market, or a flat market".

As you can see in the above chart the S&P is right at this level. It will be interesting to see what price the market closes at for the month.