Stock Market Outlook for May 9, 2024
An odd dynamic has been playing out in recent days as both Utilities (XLU) and Banks (KBE) chart new 52-week highs while the rest of the market attempts to recoup the losses that were recorded through the past month.
*** 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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Columbia India Consumer ETF (NYSE:INCO) Seasonal Chart
Guardant Health Inc. (NASD:GH) Seasonal Chart
ClearBridge All Cap Growth ETF (NASD:CACG) Seasonal Chart
Global X YieldCo Index ETF (NASD:RNRG) Seasonal Chart
iShares S&P 500 Growth ETF (NYSE:IVW) Seasonal Chart
Renaissance IPO ETF (AMEX:IPO) Seasonal Chart
Canadian Western Bank (TSE:CWB.TO) Seasonal Chart
iShares Expanded Tech-Software Sector ETF (NYSE:IGV) Seasonal Chart
Neogen Corp. (NASD:NEOG) Seasonal Chart
Jack Henry & Associates, Inc. (NASD:JKHY) Seasonal Chart
Seabridge Gold Inc. (TSE:SEA.TO) Seasonal Chart
The Markets
Stocks closed mixed on Wednesday as traders await the next catalyst to move stocks now that earnings season is winding down. The S&P 500 Index was essentially unchanged (0.00%), remaining above previous resistance around 2o and 50-day moving averages, continuing to eye the all-time high charted at the end of March around 5260. Support remains well defined at the 100-day moving average (5000), a variable hurdle that is working to keep the rising intermediate-term path of the benchmark intact. Momentum indicators continue to creep back above their middle lines, trying to avoid the adoption of characteristics of a bearish trend that had been threatened by April’s selloff. This market continues to lack significant evidence of resistance, warranting a bullish bias of stocks until such point that the trend stops evolving higher. The major hurdle on our radar is the March peak (5260) and there is still a possibility that the market stalls before it reaches that point. We can speculate on when and where a significant peak will be charted, but the reaction to any shift of tide is only warranted once the technicals confirm.
Today, in our Market Outlook to subscribers, we discuss the following:
- Odd dynamic of both utilities and banks charting 52-week highs
- New 52-week high engine has been fired back up
- The trend of credit spreads
- The record setting length of time that the treasury yield curve has been inverted
- Energy supply/demand and the seasonal trade in the sector
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Sentiment on Wednesday, as gauged by the put-call ratio, ended neutral at 0.97.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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