An intermediate-term double-top pattern on the S&P 500 Index has become confirmed, warranting ongoing caution in portfolios during this period of seasonal volatility for stocks.

*** 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.

BMO US High Dividend Covered Call ETF (TSE:ZWH.TO) Seasonal Chart

Invesco KBW Property & Casualty Insurance ETF (NASD:KBWP) Seasonal Chart

iShares U.S. Insurance ETF (NYSE:IAK) Seasonal Chart

iShares Core MSCI International Developed Markets ETF (AMEX:IDEV) Seasonal Chart

Starbucks Corp. (NASD:SBUX) Seasonal Chart

BP Amoco PLC (NYSE:BP) Seasonal Chart

Ameriprise Financial Inc. (NYSE:AMP) Seasonal Chart

Renaissance RE Holdings Ltd. (NYSE:RNR) Seasonal Chart

Chubb Ltd. (NYSE:CB) Seasonal Chart

Vanguard S&P Small-Cap 600 Value ETF (NYSE:VIOV) Seasonal Chart

SPDR EURO STOXX 50 ETF (NYSE:FEZ) Seasonal Chart

Hillenbrand Inc. (NYSE:HI) Seasonal Chart

Amerco (NYSE:UHAL) Seasonal Chart

iShares Transportation Average ETF (NYSE:IYT) Seasonal Chart

Mastercard (NYSE:MA) Seasonal Chart

Lam Research Corp. (NASD:LRCX) Seasonal Chart

Agilent Technologies, Inc. (NYSE:A) Seasonal Chart

 

Super Simple Seasonal Portfolio

 

The Markets

Stocks sold off following the release of employment results for August, which showed that the labour market has stalled.  The S&P 500 Index closed with a loss of 1.73%, continuing to roll over from implied resistance between 5622 and 5658, representing the July 17th downside gap. An intermediate-term double-top pattern is becoming confirmed as the benchmark breaks back below support at 20 and 50-week moving averages around 5500.  The early August lows for the pattern is critical as failure to hold this short-term bottom would suggest a calculated downside target towards 4750.  Ultimately, whether the August lows are poised to act as support or not, the chart setup continues to set the stage for the declines that are normal for stocks during the month of September.  MACD remains on a sell signal after crossing back below its signal line in recent days, confirming the negative divergence versus price that has highlighted the waning of buying demand heading into the traditionally weak month for equity market performance in September.  Caution in risk assets remains appropriate, particularly while within this period of seasonal volatility and while the fundamental backdrop appears uncertain.

 

Seasonal charts of companies reporting earnings today:

 

S&P 500 Index

 

TSE Composite