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Equity Clock - Market Outlook for January 29, 2025
Monday’s gap fill is underway.
*** 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 recovered from Monday’s dip as technology names snapped back amidst a short-term buy-the-dip mentality that has emerged. The S&P 500 Index gained by just over nine-tenths of one percent, bouncing higher above the 20-day moving average (5959). The variable hurdles also closely aligns with previous short-term declining trendline resistance around 5975, a barrier that capped the benchmark over the past month. Tuesday’s rebound starts to fill the gap that was opened during Monday’s selloff between 6017 and 6088; traders are likely to look to sell into this zone through the days/weeks ahead as broader momentum dwindles. Momentum indicators have negatively from price since the middle of last year, highlighting the waning enthusiasm investors had been expressing towards tech-heavy benchmarks, like this, amidst extreme valuations.We continue to monitor the potential impact of the apparent rotation in the market on our list of candidates in the market to Accumulate and to Avoid and we are still 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 (eg. Technology), potentially replaced by some value segments of the market, and as areas to Avoid are added.
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Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
Disclaimer: Comments and opinions offered in this report are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered is believed to be accurate, but is not guaranteed.
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