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Equity Clock - Market Outlook for July 23, 2024
The period of average volatility for stocks starts today and so too does the optimal holding period for a wide range of inverse ETFs.
*** 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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The Markets
Stocks rallied on Monday, attempting to erase some of the decline recorded last week, as traders attempted to reload on some of the technology stocks that recorded steep declines in the past few days. The S&P 500 Index ended higher by 1.08%, retaking levels back above its 20-day moving average (5545) that was broken at the end of last week. Momentum remains near-term negative following last week’s decline, but some relief on the Relative Strength Index (RSI) around the 50-line is attempting to keep characteristics of a bullish trend intact. A short-term downside gap remains open between 5622 and 5658, a zone that will act as the cap to the summer rally that has now past its average peak. The time is here to prepare portfolio strategy for the period of volatility for stocks that runs through the next three months.
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Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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