Stock Market Outlook for March 8, 2022
S&P 500 Index has broken back below significant support at 4280, reigniting the risk of the completion of the head-and-shoulders topping pattern.
*** 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.
Matador Resources Co. (NYSE:MTDR) Seasonal Chart
Western Asset Investment Grade Defined Opportunity Trust Inc. (NYSE:IGI) Seasonal Chart
ProShares Short VIX Short-Term Futures ETF (NYSE:SVXY) Seasonal Chart
Akoustis Technologies, Inc. (NASD:AKTS) Seasonal Chart
The Markets
Stocks fell on Monday as energy prices surged with the price of WTI Crude reaching in the highest level since 2008. The S&P 500 Index slipped by nearly three percent, breaking horizontal support (and a big level for us) at 4280. The benchmark continues to roll over from short-term resistance presented by its 20-day moving average as the trend of lower-lows and lower-highs continues to evolve. Momentum indicators remain below declining trendline resistance and characteristics of a bearish trend remain apparent. A bearish crossover with respect to MACD dampens the potential of the positive momentum diverge that was noted in recent weeks as providing evidence of waning selling pressures, typically a precursor to a change of trend. What was support at 4280 is now in a position of resistance, which once again threatens the completion of the massive head-and-shoulders topping pattern that had been highlighted into the end of last month.
Today, in our Market Outlook to subscribers, we discuss the following:
- The rapid rise in the price of oil and the comparison to pre-recessionary periods of 2000 and 2008
- The violation of support on the S&P 500 Index at 4280 and the change that we are enacting in the Super Simple Seasonal Portfolio
- VIX suggesting selling put options may be a viable strategy heading into the back half of March
- Clues that the VIX may present to indicate a significant low in stocks
- Upgrades and downgrades in this week’s chart books: Find out what we’ve upgraded to Accumulate this week and the general themes that the market continues to revolve around
Subscribe now and we’ll send this outlook to you.
Want to know which areas of the market to buy or sell? Our Weekly Chart Books have just been updated, providing a clear Accumulate, Avoid, or Neutral rating for currencies, cryptocurrencies, commodities, broad markets, and subsectors/industries of the market. Subscribers can login and click on the relevant links to access.
Subscribe now.
Sentiment on Monday, as gauged by the put-call ratio, ended bullish at 0.93.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
| Sponsored By... |
|
