Stock Market Outlook for September 10, 2024
If we are entering into a period of sustained weakness for stocks, the Junk bond market is certainly not reflecting this potential shift of 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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Bank of New York Mellon Corp (NYSE:BK) Seasonal Chart
The Travelers Cos., Inc. (NYSE:TRV) Seasonal Chart
US Bancorp (NYSE:USB) Seasonal Chart
Hanover Insurance Group, Inc. (NYSE:THG) Seasonal Chart
STMicroelectronics NV (NYSE:STM) Seasonal Chart
iShares U.S. High Dividend Equity Index ETF (TSE:XHU.TO) Seasonal Chart
The Markets
Stocks snapped back from last week’s selloff, but the uptick did little to change the bearish perspective that has materialized for major broad market benchmarks. The S&P 500 Index recorded a gain of 1.16%, remaining within the span of Friday’s downside candlestick that saw a violation of prospective levels of support at the 20 and 50-day moving averages. Resistance remains implied between 5622 and 5658, representing the July 17th downside gap. An intermediate-term double-top pattern has become confirmed as the benchmark breaks back below support at 20 and 50-week moving averages around 5500. The chart setup continues to set the stage for ongoing declines that are normal for stocks during the month of September and has enticed us to add the large-cap benchmark to our list of Avoid candidates. MACD remains on a sell signal after crossing below its signal line, confirming the negative divergence versus price that has highlighted the waning of buying demand heading into the traditionally weak month for equity market performance in September. Caution in risk assets remains appropriate, particularly while within this period of seasonal volatility and while the fundamental backdrop appears uncertain.
Want to know which areas of the market to buy or sell? Our Weekly Chart Books have just been updated, providing a clear Accumulate, Avoid, or Neutral rating for currencies, cryptocurrencies, commodities, broad markets, and subsectors/industries of the market. Subscribers can login and click on the relevant links to access.
- Currencies
- Cryptocurrencies
- Commodities
- Major Benchmarks
- Sub-sectors / Industries
- ETFs: Bonds | Commodities | Equity Markets | Industries | Sectors
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Today, in our Market Outlook to subscribers, we discuss the following:
- Our weekly chart books update, along with our list of all segments of the market to either Accumulate or Avoid
- Other Notes
- Junk bond prices remaining resilient in the midst of market strains
- REITs attracting buying demand
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Sentiment on Monday, as gauged by the put-call ratio, ended bearish at 1.11.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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