The precedent of a negative Santa Claus rally and a first week of January return is not encouraging for the prospects of the equity market through the year ahead.
*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities. As always, the use of technical and fundamental analysis is encouraged in order to fine tune entry and exit points to average seasonal trends.
Stocks Entering Period of Seasonal Strength Today:
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Super Simple Seasonal Portfolio
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The Markets
Stocks wobbled in the final session of the first week of the year as traders debated on how to react to the much stronger than expected payroll report for December. The S&P 500 Index managed to finish the session higher by just less than two-tenths of one percent, remaining pinned below the 20-day moving average that was broken in the previous session. The one-session reprieve in selling pressures that has been observed to start the year does little to change the near-term trend back to positive and the risk remains that we will see a test of previous resistance, now support, at 4600. The intermediate-term path stemming from the October of 2022 bottom remains positive, suggesting that remaining buyers of these near-term dips remains prudent until evidence materializes that a sustainable trend lower is set to begin. Daily momentum indicators continue to alleviate the extreme overbought readings that had been derived through the middle of December, but they remain above their middle lines, which is characteristic of a bullish trend.
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Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
