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Market Timer: January to determine 2016's fate

Traders work on the floor of the New York Stock Exchange (NYSE).
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Traders work on the floor of the New York Stock Exchange (NYSE).

Editor's Note: Jeffrey A. Hirsch is editor-in-chief of the "Stock Trader's Almanac," which popularized the "sell in May" market strategy.

January has quite a legendary reputation on Wall Street as an influx of cash from year-end bonuses and annual allocations typically propels stocks higher. January ranks No. 1 in monthly performance for the Nasdaq since 1971 and fifth for the S&P 500 since 1950.

It is the end of the best three-month seasonal span for markets and possesses a full docket of indicators and seasonalities.

Here's what you need to watch for...