Stock Market Outlook for September 14, 2022
“Stay the course with this low volatility bet, despite Tuesday’s abrupt turn”
*** 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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Community Bank Sys, Inc. (NYSE:CBU) Seasonal Chart
Molson Coors Canada Inc. (TSE:TPX/B.TO) Seasonal Chart
SpartanNash Company (NASD:SPTN) Seasonal Chart
The Markets
Stocks faltered on Tuesday as concerns pertaining to the state of inflationary pressures in the economy had traders selling stocks. The S&P 500 Index dropped by 4.32%, gapping back below the rising 50-day moving average that had been broken to the upside in recent days. The downside gap can be seen between 4037 and 4100, instantly creating a level of resistance for traders to shoot off of as the resumption of the positive intermediate trend realizes its first significant threat. Momentum indicators had been converging on their middle lines in recent days with MACD even on the verge of charting a bullish crossover above its signal line as positive trends continue to develop, but Tuesday’s downturn certainly gives pause to this favourable path. Horizontal support continues to be pegged around the lows of last week around 3900, providing a logical point, if broken, to re-examine our near-term positive bias of stocks given some of the favourable revelations that had materialized over the past week. September is the most volatile month of the year for the equity market, therefore wild swings, like this, are not out of the realm of possibility and we must stay on our toes until the start of the fourth quarter at the start of October when the more profitable period for stocks typically begins.
Today, in our Market Outlook to subscribers, we discuss the following:
- A look at the hourly chart of the S&P 500 Index
- “Stay the course with this low volatility bet”
- The Volatility Index (VIX)
- Significant horizontal support for the MSCI World ex-US Index
- Advance-decline lines are no longer trending lower
- US Consumer Price Index (CPI)
- Inflation expectations
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Sentiment on Tuesday, as gauged by the put-call ratio, ended bearish at 1.15.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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