Equity Clock

Stock Market Outlook for September 21, 2020

S&P 500 Index has closed below its 50-day moving average for the first time in this recovery.

 

 

 

*** 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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Patterson-UTI Energy, Inc. (NASD:PTEN) Seasonal Chart

Lannett Co., Inc. (NYSE:LCI) Seasonal Chart

iShares 1-5 Year Laddered Government Bond Index ETF (TSE:CLF.TO) Seasonal Chart

iShares Canadian Corporate Bond Index ETF (TSE:XCB.TO) Seasonal Chart

Campbell Soup Co. (NYSE:CPB) Seasonal Chart

SEI Investments Co. (NASD:SEIC) Seasonal Chart

Advance Auto Parts Inc. (NYSE:AAP) Seasonal Chart

Eagle Bancorp Montana, Inc. (NASD:EBMT) Seasonal Chart

 

 

The Markets

Stocks closed lower on Friday as investment managers continue to rebalance/reallocate portfolios amidst the expiration of quarterly options and futures contracts.  The S&P 500 Index shed 1.12%, closing below its rising 50-day moving average for the first time in this pandemic rebound.  Resistance at the 20-day moving average, which is now rolling over, has been confirmed, shifting the short-term trend from neutral to negative.  The revelation of a short-term lower-high and lower-low charted in the past week confirms this negative path.  The intermediate-term trend is now under threat.  Throughout the rebound from the March low, the 50-day moving average has been the backstop to mild corrections realized in May and June.  But with the weekly close below the hurdle, investors are suggesting that they are no longer enticed to buy at this variable level.  The 100-day moving average presently hovers around 3185 and the 200-day moving average is around 3100, both critical to the longer-term path.  But before these longer-term hurdles are tested, a zone around 3250 presents a horizontal range of significance. Investors reacted to this range during the initial plunge in February and the initial rebound into June.  What was previous resistance would now be expected to act as support.   We’ll monitor the action to determine if this is the case.  Momentum indicators continue to embed themselves in negative territory with MACD now below 0 and RSI below 50. We sent out further insight and analysis pertaining to things that investors should be on the lookout for in our subscriber exclusive Market Outlook.  Subscribe now to receive this daily report directly to your inbox.

Sentiment on Friday, as gauged by the put-call ratio, ended close to neutral at 0.94.

 

 

Seasonal charts of companies reporting earnings today:

• No significant reports scheduled for today

 

 

S&P 500 Index

 

 

TSE Composite

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