Chart of the Day - Wednesday, March 1st, 2023

Today's Chart of the Day was shared on Twitter by Austin Harrison (@meanstoatrend). The Dow initially led the rebound off the October lows. However, it stalled out in November, and it's been relatively weak ever since. It's the only major index that's in negative territory year-to-date, closing at a fresh three-month low yesterday. Austin points out that it just broke below its December low. This triggers an old-school warning sign known as the December Low Indicator. This indicator was created in the 1970s by Forbes Columnist, Lucien Hooper. He found that full-year returns are often weak when the Dow violates its December low on a closing basis within the first quarter of a new year. It previously triggered last year, and we all know how the rest of 2022 played out...Will the December Low Indicator matter again in 2023?