Equity Clock

Stock Market Outlook for September 29, 2020

The S&P 500 Index has done everything that should be expected of it technically, but the next move will have implications for the intermediate-term trend.

 

 

 

*** 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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Jaguar Mining (TSE:JAG.TO) Seasonal Chart

Sykes Enterprises, Inc. (NASD:SYKE) Seasonal Chart

Companhia Brasileira de Distribuicao, SA (NYSE:CBD) Seasonal Chart

Itau Unibanco Banco Multiplo SA (NYSE:ITUB) Seasonal Chart

Companhia Siderurgica Nacional, SA (NYSE:SID) Seasonal Chart

Hollysys Automation Technologies, Ltd. (NASD:HOLI) Seasonal Chart

 

 

The Markets

Stocks posted strong gains to start the week as investors looked to take advantage of weakness from the past month.  The S&P 500 Index gained 1.61%, moving back towards levels of short and intermediate-term resistance at the 20 and 50-day moving averages.  Reaction to these short and intermediate-term hurdles will be closely scrutinized given the potential intermediate-term implications that would result from a rejection.  Downside risks are toward the 200-day moving average should the bulls fail to muster the strength to rally through the hurdles overhead.  Support has been confirmed at the 100-day moving average, which has provided a logical point for longer-term investors to step in.  Momentum indicators have started to curl higher following the sell signals that were generated at the start of the month.  Recently, momentum indicators had started to generate characteristics of a bearish trend with RSI below 50 and MACD below 0.  The onus is on the bulls to prove that they have the power to instil strength back into this market following September’s pullback.

Soon to be released…

We are in the process of editing our extensive monthly report for the month of October, highlighting dominant themes and opportunities for the month(s) ahead.  This 70+ page report will be delivered to subscribers before the month is complete.  Look for this report in your inbox in the next couple of days. 

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Sentiment on Monday, as gauged by the put-call ratio, ended bullish at 0.77.

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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