Stock Market Outlook for January 17, 2025
The weakest calendar year performance for Food Services and Drinking Place sales in a non-recessionary period highlights a consumer that has tightened their grip on their finances.
*** 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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Williams Sonoma, Inc. (NYSE:WSM) Seasonal Chart
Brainstorm Cell Therapeutics Inc. (NASD:BCLI) Seasonal Chart
Penumbra, Inc. (NYSE:PEN) Seasonal Chart
Communication Services Select Sector SPDR Fund (NYSE:XLC) Seasonal Chart
Opera Ltd. (NASD:OPRA) Seasonal Chart
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The Markets
Stocks traded mixed on Thursday as technology names dragged on capitalization weighted benchmarks that are heavy in the growth sector. The S&P 500 Index shed 0.21%, interacting with resistance around 20 and 50-day moving averages at 5926 and 5962, respectively. The benchmark remains below short-term declining trendline resistance around 5975, a hurdle that the benchmark has persisted below over the past month. While Wednesday’s move seems to diminish the threat that the head-and shoulders pattern on the chart was portraying previous, it has not been taken off the table. Horizontal support at 5850 presents the neckline to the topping pattern, a bearish setup that proposes a downside target of 5670. Superseding any patterns that can be picked out is just the mere appearance that resistance, such as around the 20 and 50-day moving averages, is starting to have a greater influence than support. Reason to conclude the shift of trend has been provided. We continue to scrutinize the potential impact of this evolving shift on our list of candidates in the market to Accumulate and to Avoid and we are expecting that our list will show more of a neutral appearance through the weeks ahead as segments that were previously noted as Accumulate candidates fall off and areas to Avoid are added.
Today, in our Market Outlook to subscribers, we discuss the following:
- Equal Weight S&P 500 ETF moving above a short-term bottoming pattern
- The struggle in the Technology sector (Apple)
- Rising trend of yields (declining path of bond prices) being put to the test
- US Retail Sales and the investment implications within
- The change in retailer inventories
- Visa Spending Momentum Index
- Retail industry stocks
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Sentiment on Thursday, as gauged by the put-call ratio, ended bullish at 0.92.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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