A wide range of benchmarks/ETFs are showing initial struggle around significant resistance following last week’s pullback.
*** 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:
Subscribers Click on the relevant link to view the full profile. Not a subscriber? Signup here.
Super Simple Seasonal Portfolio
This content is exclusive to subscribers of EquityClock.com. Please Log In or Subscribe to proceed.
The Markets
Stocks snapped back on Monday following the slump in prices that coincided with the first week of the year as investors raced back towards technology. The S&P 500 Index gained 1.41%, turning back above the rising 20-day moving average and converging again on significant resistance, as well as the all-time high, around 4800. The Relative Strength Index (RSI) is curling higher above its middle line and MACD is doing the same, maintaining characteristics of a bullish trend as we head towards the start of the fourth quarter earnings season in the days ahead. While the intermediate-term trajectory of the benchmark remains positive, it is reasonable to not expect too much of market performance in the next couple of months as we enter a softer period on the calendar for market performance. Performance for broad equity benchmarks tends to be weak through the middle of March, something that is consistent with the average path during election years. Major benchmarks have some significant hurdles to overcome in the near-term, backing the near-term uncertainty for stocks through the first couple of months of the year, but there is still no indication, yet, that the positive intermediate path of the market has been broken. This suggests remaining holders of current equity exposure and look to put new money to work on any weakness derived between now and March.
This content is exclusive to subscribers of EquityClock.com. Please Log In or Subscribe to proceed.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
