Stock Market Outlook for August 28, 2024
The pace of price appreciation of US homes can be seen slowing as the dynamics of supply and demand come back into balance.
*** 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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Big 5 Sporting Goods Corp. (NASD:BGFV) Seasonal Chart
Korea Fund, Inc. (NYSE:KF) Seasonal Chart
Elevance Health, Inc. (NYSE:ELV) Seasonal Chart
White Gold Corp. (TSXV:WGO.V) Seasonal Chart
The Markets
Stocks ticked mildly higher on Tuesday as investors brace for the release of earnings from Artificial Intelligence leader NVIDIA on Wednesday. The S&P 500 Index closed with a gain of less than two-tenths of one percent, still showing signs of stall within a zone of implied resistance between 5622 and 5658, representing the July 17th downside gap. Hint of a short-term peak developing remains apparent, something that, if confirmed, would raise the risk of an intermediate-term double-top pattern below the all-time high recorded during the summer rally period through the first half of July. Short-term momentum indicators have rolled over and the MACD histogram on the daily chart is no longer on the rise, threatening to result in a bearish divergence with respect to this momentum indicator ahead as the bullish intermediate-term (multi-month) trend loses its grip. Caution in risk assets remains appropriate, particularly while within this period of seasonal volatility and while the fundamental backdrop appears uncertain.
Today, in our Market Outlook to subscribers, we discuss the following:
- US Durable Goods Orders and the investment implications within
- US Home Prices
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Sentiment on Tuesday, as gauged by the put-call ratio, ended neutral at 0.98.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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