When the curtain closed on 2023, Wall Street and everyday investors had plenty of reason to cheer. The 127-year-old Dow Jones Industrial Average (DJINDICES: ^DJI) climbed to a record high last year, while the benchmark S 500 (SNPINDEX: ^GSPC) and growth stock-powered Nasdaq Composite (NASDAQINDEX: ^IXIC) catapulted by 24% and 43%, respectively.

But a new year brings new questions for investors. Topping the list: Where will stocks head next?

Although there's no such thing as a forecasting tool that can, with 100% accuracy, predict directional moves in the Dow Jones, S 500, and Nasdaq Composite, there are a couple of predictive indicators that have strongly correlated with movements in the three major stock indexes throughout history. One such indicator, which hasn't been wrong for the past 58 years, has a potentially ominous warning for investors.

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Source Fool.com