Stock Market Outlook for April 19, 2022
Both the 10-year treasury yield and the US Dollar Index are reaching towards critical levels of resistance, the reaction to which could have significant implications for the equity market.
*** 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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Apartment Investment and Management Co. (NYSE:AIV) Seasonal Chart
Mondelez International, Inc. (NASD:MDLZ) Seasonal Chart
Amphastar Pharmaceuticals, Inc. (NASD:AMPH) Seasonal Chart
Zillow Group, Inc. Class C (NASD:Z) Seasonal Chart
The Markets
Stocks closed slightly lower on Monday as rates and the US Dollar continue to pressure prices. The S&P 500 Index closed down by two basis points (0.02%), remaining capped by the declining 50-day moving average, which was re-broken in the past week. Major moving averages have all converged on one another and are gradually losing their positive slope, typically a characteristic of a bear-market decline. Momentum indicators continue to point lower and the rising trends that had developed over the past couple of months are under threat. The major level on the downside remains 4280, which, if broken, places the head-and-shoulders topping pattern that we had highlighted earlier in the year back in play. The only hope for the benchmark at this juncture is that it is able to hold support at the 4280 zone and chart a higher-low, thereby taking a more threatening outcome off the table, but, for the time-being, the short and intermediate trends are lower.
Today, in our Market Outlook to subscribers, we discuss the following:
- The rise of both rates and the US Dollar
- US Industrial Production
- Empire State Manufacturing Survey
- Notable upgrades and downgrades in this week’s chart books
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Sentiment on Monday, 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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