Stock Market Outlook for March 22, 2023
Looking for setups that are prone to mean-reversion into the end of the quarter.
*** 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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Principal Financial Group (NASD:PFG) Seasonal Chart
Oil States Intl (NYSE:OIS) Seasonal Chart
HealthStream, Inc. (NASD:HSTM) Seasonal Chart
Movado Group, Inc. (NYSE:MOV) Seasonal Chart
Sabine Royalty Trust (NYSE:SBR) Seasonal Chart
Vanguard FTSE Europe ETF (NYSE:VGK) Seasonal Chart
Canso Credit Income Fund (TSE:PBY/UN.TO) Seasonal Chart
The Markets
Stocks rebounded on Tuesday as sectors that had beaten down over the past week reverted back to the mean ahead of the important FOMC event on Wednesday. The S&P 500 Index closed higher by 1.30%, moving back above both 20 and 200-day moving averages and ending just below the 50-day moving average at 4012. Overall, the benchmark remains burdened by this confluence of major moving averages in the range between 3900 to 4000 that is acting as a position of resistance; it appears likely that a catalyst would be required to break the benchmark up and out. MACD has triggered a new Buy signal following the crossover of its signal line, but the bullish event comes at a level that is lower than the bullish crossover that preceded it at the start of January, highlighting a divergence versus price. The momentum indicator is showing a path of lower-lows and lower-highs, albeit slight, since the peak charted in December, hinting of a similar outcome for price ahead.
Today, in our Market Outlook to subscribers, we discuss the following:
- Hourly look at the large-cap benchmark
- The potential for mean-reversion into quarter-end
- US and Canadian Bank stock ETFs
- US Existing Home Sales
- Canada Consumer Price Index (CPI)
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for March 22
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Sentiment on Tuesday, as gauged by the put-call ratio, ended around neutral at 1.01.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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