Stock Market Outlook for September 12, 2024
The rebound in the S&P 500 Index from last week’s selloff certainly skews the look of the intermediate-term topping pattern, but a close above last week’s high is still required to suggest something of significance.
*** 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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APA Corporation (NASD:APA) Seasonal Chart
Lamar Advertising Co. (NASD:LAMR) Seasonal Chart
Steelcase, Inc. (NYSE:SCS) Seasonal Chart
Financial Institutions, Inc. (NASD:FISI) Seasonal Chart
Sotherly Hotels Inc. (NASD:SOHOO) Seasonal Chart
The Markets
Stocks recovered from early weakness on Wednesday as buyers flooded back into the beaten technology stocks following Tuesday night’s presidential debate. The S&P 500 Index jumped by over one percent, moving back above implied resistance at the 50-day moving average (5507) and closing at the 20-day average (5557). The recovery certainly skews the look of the intermediate-term topping pattern that was charted from last week’s rollover below the mid-July (summer rally) peak around 5669. The large-cap benchmark continues to trade within the range of last week’s bearish candlestick, which fails to alter the intermediate-term view, yet. Last week’s high at 5623 is important as a close below this level by the end of the week keeps the negative tilt that the market has been expressing intact, while a violation would mitigate the threat that the topping pattern has been portraying. The weakest part of September is still ahead, running through the last couple of weeks of the month, therefore we are far from achieving the all-clear to entertain a more risk-on perspective to portfolio allocations while the seasonal, technical, and fundamental backdrops present warning. 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:
- The rebound in the Technology sector and the level to watch
- US Consumer Price Index (CPI) and the investment implications within
- Weekly petroleum supply and demand
- Oil and the stocks that rely on the strength of the energy commodity
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Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.86.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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