Stock Market Outlook for September 19, 2024
While rate cuts may help consumer loan activity in the future, the current high cost of borrowing is burdening this cohort of the economy and it is unlikely that a half point cut will have an immediate impact.
*** 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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California Water Services Group (NYSE:CWT) Seasonal Chart
PHX Energy Services Corp. (TSE:PHX.TO) Seasonal Chart
Entree Resources Ltd. (TSE:ETG.TO) Seasonal Chart
Park Lawn Corp. (TSE:PLC.TO) Seasonal Chart
Calian Group Ltd. (TSE:CGY.TO) Seasonal Chart
Barrett Business Services, Inc. (NASD:BBSI) Seasonal Chart
iShares Global Water Index ETF (TSE:CWW.TO) Seasonal Chart
Brand Leaders Plus Income ETF (TSE:HBF.TO) Seasonal Chart
Cumulus Media Inc. (NASD:CMLS) Seasonal Chart
The Markets
Stocks closed slightly lower following a volatile afternoon trade that saw investors react to the first Fed funds rate cut since the onset of the pandemic. The S&P 500 Index ended down by nearly three-tenths of one percent, again after touching a fresh all-time high and puncturing horizontal resistance at 5650 intraday. Hints of a near-term peak are being provided following Tuesday’s doji indecision candlestick as the market shows its reluctance to move past resistance overhead. The strength in the market over the past eight trading sessions has skewed the look of the intermediate-term topping pattern that was charted from the recent rollover below the mid-July (summer rally) peak, however, the recent trading action suggests that the bulls are losing their grip. The true reaction to the Fed event will become apparent in the days ahead once investors have had time to digest the result. The weakest part of September is now upon us, running through the last couple of weeks of the month, and we are certainly not excited about broad equity market allocations at this time. The hurdles to watch for a directional bias for the intermediate-term trend remain support at the 100-day/20-week moving average (5422) and downside gap resistance between 5622 and 5658; a break of either would likely continue the near-term direction of travel, either higher or lower. Until then, a narrowing consolidation span is the pattern.
Today, in our Market Outlook to subscribers, we discuss the following:
- US Housing Starts
- The trends of Consumer Loan activity
- Consumer debt delinquency rate
- Visa Spending Momentum Index
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Sentiment on Wednesday, as gauged by the put-call ratio, ended close to neutral at 0.94.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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