After a disappointing January, stocks rallied on the first day trading in February. However, for strategist Sam Stovall, the January barometer should not be discounted.
In other words, what happens in January can foreshadow the rest of the year.
"In the down years, I think what it basically says, there is confusion. It's a confirmation of confusion rather than confidence," the managing director of U.S. equity strategy for S&P Capital IQ said in an interview with "Closing Bell" Monday.
In fact, the average price change in a down year has been a decline of an additional 7/10 of one percent for the remaining 11 months of the year, he noted.
That said, Stovall believes investors can get a good guide from the sectors and subindustries that did well in January.