Equity Clock - Market Outlook for January 17, 2025

The weakest calendar year performance for Food Services and Drinking Place sales in a non-recessionary period highlights a consumer that has tightened their grip on their finances.

*** 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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Williams Sonoma, Inc. (NYSE:WSM) Seasonal Chart

Brainstorm Cell Therapeutics Inc. (NASD:BCLI) Seasonal Chart

Penumbra, Inc. (NYSE:PEN) Seasonal Chart

Communication Services Select Sector SPDR Fund (NYSE:XLC) Seasonal Chart

Opera Ltd. (NASD:OPRA) Seasonal Chart

Super Simple Seasonal Portfolio

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The Markets

Stocks traded mixed on Thursday as technology names dragged on capitalization weighted benchmarks that are heavy in the growth sector. The S&P 500 Index shed 0.21%, interacting with resistance around 20 and 50-day moving averages at 5926 and 5962, respectively. The benchmark remains below short-term declining trendline resistance around 5975, a hurdle that the benchmark has persisted below over the past month. While Wednesday’s move seems to diminish the threat that the head-and shoulders pattern on the chart was portraying previous, it has not been taken off the table. Horizontal support at 5850 presents the neckline to the topping pattern, a bearish setup that proposes a downside target of 5670. Superseding any patterns that can be picked out is just the mere appearance that resistance, such as around the 20 and 50-day moving averages, is starting to have a greater influence than support. Reason to conclude the shift of trend has been provided. We continue to scrutinize the potential impact of this evolving shift on our list of candidates in the market to Accumulate and to Avoid and we are expecting that our list will show more of a neutral appearance through the weeks ahead as segments that were previously noted as Accumulate candidates fall off and areas to Avoid are added.