Stock Market Outlook for April 19, 2024
Short-term breadth indicators suggest that the equity market has become oversold, setting the stage for a near-term rebound in prices.
*** 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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Ellsworth Fund Ltd. (AMEX:ECF) Seasonal Chart
Technology Select Sector SPDR Fund (NYSE:XLK) Seasonal Chart
PIMCO Municipal Income Fund (NYSE:PMF) Seasonal Chart
Mondelez International, Inc. (NASD:MDLZ) Seasonal Chart
EnLink Midstream, LLC (NYSE:ENLC) Seasonal Chart
Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI) Seasonal Chart
UGI Corp Holding Co. (NYSE:UGI) Seasonal Chart
Electrovaya Inc. (TSE:EFL.TO) Seasonal Chart
Apartment Investment and Management Co. (NYSE:AIV) Seasonal Chart
United Dominion Realty Trust (NYSE:UDR) Seasonal Chart
Nikola Corporation (NASD:NKLA) Seasonal Chart
The Markets
Stocks again struggled to gain traction on Thursday as investors remain on edge amidst concerns pertaining to interest rates and geopolitical tensions. The S&P 500 Index closed lower by just over two-tenths of one percent, continuing to move into February’s upside open gap and implied support between 4983 and 5038. Short-term resistance can be pegged at the declining 20-day moving average, now hovering at 5172. Momentum indicators remain on the decline with the Full Stochastic oscillator firmly into oversold territory, setting up the appropriate conditions to realize a reprieve in the near-term selling pressures as we navigate through the heart of earnings season and towards the end of April. The price action of recent weeks has certainly corrected much of the excesses that had been built up and investors should be prepared for the rebound out of this short-term slide to play the ongoing positive intermediate-term path. Seasonally, a couple of more weeks remain in the best six month of the year timeframe for stocks and we have no reason to develop a negative bias, yet, akin to what is normally appropriate for the off-season that runs from May to October.
Today, in our Market Outlook to subscribers, we discuss the following:
- Short-term pain for long-term gain
- NYSE Cumulative Advance-Decline Volume line
- NYSE Composite back to previous horizontal resistance
- The start of the optimal holding period for the Technology sector
- US Existing Home Sales
- Weekly Jobless Claims and the health of the labor market
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Sentiment on Thursday, as gauged by the put-call ratio, ended bearish at 1.05.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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